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Not sure anyone can give too specific thought. Here are some big picture thoughts.

Rebuilds have zero standards, so who knows what was done, let alone when. It's useless.

White smoke is water, often vaporized by overheating. Overheating could warp your head, which will need to be machined. The water dripping down the case, could also be dripping inside the oil pathways, which is really bad.

Clearly you need a new exhaust elbow and/or heat exchanger, wasn't sure which you meant. Both probably need cleaning at least.

If you could easily pull it through the compression cycle, I would guess there is something wrong with the valves. Did you hear any hissing? Like air leaking?

Your prob does not seem very compatible with a tight budget.
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