ask you mechanic who the best rebuild shops are in/around your area. Go to them, find out what a rebuild, port, polish, and bore job would cost. Not only would the engine be like new, but it would have more power than when it was new. all of this can be had for roughly 2-3k. A strict rebuild without the other fun stuff would be closer to 1k.
A swap is a good chioce if you can find out the histroy of that motor. You could buy one, then have the head gasket blow after two weeks. You are looking at 1000-2500 for the engine and install.
<span style='color:gray'><span style='font-family:Courier'>1995 e36 3 Series RIP
1999 e46 3 Series BURN IN HELL
2000 MR-S Roadster= Current</span></span>
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