Here's a similar starting point for $800 less up front, roughly local too.
I would haunt Craigslist for the 1985-2008 "$1200 non-runner" Bullet myself. Anywhere within 1500 miles is doable.
I like the idea of two identical project powerplants - less learning, more riding. Parts are mixable. Special tools do double duty.
Searches under ($250 - $2500) "motorcycles" and "motorcycle parts" are productive, folks mispel alotte....so many slip thru unnoticed.
https://seattle.craigslist.org/see/mcy/d/kirkland-1958-indian-woodsman-500/7284370269.html1958 Indian Woodsman 500 restoration project w/title. Royal Enfield -
$2,200 (Kirkland)
The "piss 'n vinegar" part costs money. At least a steel con rod and forged piston are needed to keep from fragging the cases when the stock "Velveeta-grade" conrods & pistons detonate under throttle. I just got the forged 6.5/1 H's slug, $200, should be here Friday. We'll see how well it fits the new alloy barrel I bought 10 years back from Kevin at CMW.
I'm not after big power, I just don't want the crankcases to get fragged halfway to Minden, 80 miles from nowhere. The steel rings should seal better & last much longer than the stock cast iron ones, hopefully getting my oil consumption down from 500 miles/quart!
Sounds like you just want the engine/trans guts as a transplant to an existing Indian frame that you plan on making into a hardtail? You might want to pop the shocks off your Bullet, make up a couple struts and toot around on that for awhile to "pre-run" that hard tail dirt bike concept. H's has a nice kit that doesn't preclude a return to stock if it doesn't work out, better than permanently carving up an artifact.
Personally, I'd keep polishing on your trailbike. It's very easy to get distracted and sink time (you could be trail riding!) & money into a machine that you find you aren't riding much. You very obviously are enjoying your trailrides, a hardtail bobber might just become exotic garage art after a day or so spent at the local gravel pit sliding around.
Maybe instead of a $3000 parts bike one time, bide your time, get vaccinated, keep an eye on Craigslist, make a couple overnight road trips (with little mama to share the trip, of course!) and end up with a couple project Parts Bullets and have cash left over...? Just a thought. - ACR -