Will your brother be pulling the engine to do this work? Or doing it in place?
If he's taking it out regardless, and you plan to keep the boat for more than a few years, I would swap it for a new engine if you can afford it.
That's a good price on the Yanmar 3YM20. But definitely compare it to the Betamarine BD722 (3 cylinder 20 hp), which has some nice features that the Yanmar lacks.
You could probably get some money for the 2GM, and even more if you rebuilt it...
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Pacific Seacraft Crealock 31 #62
NEVER CALLS CRUISINGDAD BACK....CAN"T TAKE THE ACCENT