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05 Cadillac Deville Engine Replacement Advise

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First time Cadillac Owner. I just purchased a one owner 05 Cadillac Deville DHS that looked fantastic for its age. It has 105k miles on the engine. The couple got too old to safely drive so it had been parked in their garage. Everything in the car worked and was exceptionally clean and it drove great on the test drive. One week (60 miles driven) the car began to run very rough and making engine noise. I used a Bluedriver code reader and it shows a Crankshaft Position Sensor P0016 and a P0300 random misfire. My local mechanic came over and listened to it. He says I think something is wrong with the timing chain to make that much noise and make it run that poorly. I had it towed down to his shop. He did some compression tests, and looked at the timing chain and valves. He determined the timing chain tensioner had failed and there was valve damage done to the rear end of the engine. I was planning to change the oil soon but I was still in the honeymoon phase of the car and had not gotten too it yet. The computer engine told me the oil life was at 98% oil life. However, he told me he did not want to do an engine swap himself and suggested I pull the plug on this adventure. We also discussed the head gasket issues these engines have been known to have if I decided to have it fixed.

Since I liked the car and don't want to give it away I began searching for a willing, qualified, and affordable mechanic to do the repair work. Today I found and purchased an Identical 2005 Cadillac Deville 4.6 Northstar engine "Y with 79K on it. I paid $850 from a wrecking yard and it has 195-215 compression. 130 day guarantee. I think if I am going to spend money on swapping an engine it only makes sense to replace some items that are likely to fail while the engine is out of the car. I am seeking helpful advice. I was thinking of having them change the water pump, thermostat, rear main crankshaft seal, starter, Spark Plugs. I am working with a budget and realize I would exceed it if I replace too many parts. I am hoping to get this done for for 3-$3500 including the engine I bought and the labor. Any helpful advise it appreciated. I have not been down this road before but have read a lot. Thank You.

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