1st 318 rebuild

Let's start with the basic.

Do you want to do a 318 or a 360 engine?
I ask because if it does not matter, then use the 360 engine.
Worry not about the lip on the bore. Each block should be looked at by a machinist. And then prepped as needed.

If money is a concern and your trying to save money on machine work by not boring the engine, then you do not have enuff money and are probably in the wrong hobby.
These things take money and you need a good bank roll to just get a platform off the stand.