Hate to do this to you, but......
You will have about $1500 in exhaust worthy of going thru transom on that deal...
Spoiler number two... Plan on replacing your prop. The 228 is a 305 Chevy and you are probably going to build a 350 (I would), you gear ratio in that drive should be a 1.50:1 and you are probably turning a 17"pitch prop, you will probably need to jump to a 21" pitch to get the RPM to stay in the acceptable range.
Keep your eyes peeled for the later style center riser exhaust, I just picked a set up for my neighbor for $150 and we converted it with some copper pipe (you could use galvanized steel conduit, but it don't live long because of rust).
Good luck, sounds like an awesome project.
A lot of out drives lately... 
GT
Thanks for getting back to me, yeah i figured i wont be able to do it with this budget which is fine no biggie.
As far as the prop i know ill be looking for another one. I currently have two, a 17 pitch aluminum prop and a 19 pitch stainless steel prop. With the engine plans i have, i am thinking ill be needing to lean towards a 21 or possibly a 23 pitch.
heres the outline for the engine, should be an honest 350+ horse
1998 Vortec shortblock (all new rings bearings etc)
Stock compression 9.3:1
Stock vortec heads for now (until i can afford an aftermarket set)
Custom cam that i dropped off at my grinder today. 224/224 @.050 503" lift on a 110 LSA (he has one in his boat which is a stock 350 mag, and has done hundreds of them. It is a monster of a cam tons of lowend and midrange plus pulls all the way to 6K with the right prop)
Performer or Performer RPM intake if theres room
and a 650 marine carb yet to be decided
The shortblock i have is out of an old truck i had, less than 40K on it but its getting freshened up. It should be a decent running setup though nothing overkill. And if im lucky it will push the boat quite a bit harder than the 305 thats in it.
Then down the road i plan to build a 383 with another block i have sitting around