89 Burb Debate- Help

89 burb with 4 inch lift and 33 tires. It has around 170k miles. Everything works great on it but I blew out the headgasket a year ago. It has been sitting in the garage while here and there I work on it. My question is do I sell if for a few hundred as is, put in a new engine, fix the headgaskets and hope it runs ok. With a working engine it might be worth $3000. I also have a 84 jeep that needs lots of love and attention. I have 2 kids and maybe more on the way. But wife would prefer to keep driving her honda civic. DO I keep it or get rid of it.

Also could I put a different engine in it that gets better gas mileage without a lot of modifications???:banghead:

Edit: Mostly used as a grocery getter, pulling cj7 jeep and canoeing.

My op. fix one or the other two toys you have sell it, invest the money in fixing the other ride you kept. just my 2 cents an she can keep the civic ...

If the engine was well-maintained before the head gasket blew, it should have at least another 100,000 miles in it (my '90 went 370,000). A whole new engine shouldn't be necessary.

If there's no internal damage and compression is acceptable (I know you can't check it now), it's definitely worth fixing, even if it's just to sell.