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Junkyard engine swap vs reliable daily driver - where's the line?

So I grabbed a 5.3L LS out of a 2002 Chevy truck at Pull-A-Part in Phoenix for $250. Thing had 180k miles, I did the basic gaskets and put it in my S10. Runs decent but I'm chasing oil leaks and a weird misfire still after 3 months. Meanwhile my buddy spent $400 on a lower mile 4.8L from a salvage yard, did the same work, and it's been flawless for a year. Half this sub says just get the cheapest motor you can find and throw it in. Other half says spend the extra cash on a known running unit with compression test done. I'm leaning toward the reliable side now after this headache. For a budget build, is it better to risk the cheap gamble or pay double for something that should just work? Anyone else gotten burned by a junkyard special?
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wilson.claire
Did you check if the 5.3 had the notorious lifter tick before you installed it? I feel your pain though, sometimes you just get unlucky with these junkyard motors.
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