To build or not...
Welcome!!
If you can get your hands on an engine, that you know 100% is good ALL OVER - then it makes sense to just buy it and swap.
HOWEVER - that's probably impossible - cos the bikes are so old - any engine you buy, is probably (DEFINITELY!!) going to have some hidden / latent problems, which you then have to fix later... so you might want to split it anyway, to inspect and fix probs before they become catastrophic.
(BTW - not sure how many 'late model' engines will fit your bike -I don't think any)
I've effectively rebuilt 2 1986 engines now - and I haven't bought many 'genuine parts' new. You can find solid, good condition used parts if you keep your eyes on ebay and ask on sites like these.
Any crucial things like the cylinder & head can be reconditioned (honed / recut) etc. for not a lot of money. If you have to replace the piston & rings - you can buy a kit from a local manufacturer - don't have to buy Yam parts. Ditto valves.
If you need moral support - check out our videos - if girls can do it - you can do it! 
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Some great quote about hard core travel that nobody has said yet.[/URL]
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