I may have got lucky... I found a guy who has an LQ9 he tore down. He is selling me the heads for $100 and says he has the bottom end / short block for $550. He will even drop it off at my house.
I'm going to go to his house on Saturday and take a look at the block. It's got the oil pan, heads, and intake off.
He mentioned the block was acting up / needs new bearings. He said he didn't believe he spun any bearings. However, was tearing it down to rebuild.
I'm a little worried about the cam bearings. Any way I can check those while it's torn down? How do you check them? Will the cam wiggle or anything? Anything else I should check?
Pictures of the motor:
I did a quick search and found this thread with pictures of a cam with one of the inner bearings stuck to it. https://www.yellowbullet.com/threads/cam-bearing-came-out-when-removing-cam-6-0l-ls.2626433/
If you spend some time and search the web for Chevy LS Cam Bearing Failure, you will come up with lots of threads and pics to guide you.
To really check the block right, the cam has to be out. The cam bearing bores in the block should not have any ridge or scarring. I have a picture somewhere that shows a block with a cam bearing bore, hole with a fat ridge worn into it from bearing spin.
One thing you can tell right off in the picture you posted; This engine has been opened up and toy'd with at some point. Head studs are not factory. The factory uses TTY head bolts. I'd ask for further info on what he means by "the block was acting up." Sounds a bit off.