Engine would have to come out. $500 is less than I thought it would be. It's probably an offset ground crank with rods and/or pistons scavenged from other engines.
Basically your rebuilding the engine. You will want to check the condition of the cylinder bores. I worn you'll want to bore them oversize and get oversized pistons.
If my engine needed a rebuild I'd look into it, but it's alot of work and expense if everything runs great as is.