I say pick a power goal, not a $ figure, and work from there. Remember everything has to work together, and if you skimp on something you may as well not have done any of it.
Building a 250hp L28 is surely a well-known thing. I would be considering:
balance rotating mass
bigger balancer (chris wood of speed technology for example)
arp rod bolts
deck head
deck block
as big a cam as you're comfortable with for intended use
appropriate induction (efi/carby, whatever, both will work)
head porting:
I think you can save some money here by a bit of DIY action, depending on how many L6 heads you can get your hands on, and how patient you are. There are plenty of books that detail porting techniques, and I'm sure you could rig up a DIY flow bench if you so chose.
Just a question of time I guess.
If you're keen you could get a datrats head port job ($3K) and enough for 350hp @ 25 in.H2O.
Dave