That’s right. Not only the cylinder was damaged, you can expect the lower end to have excessive wear. Personally, I avoid mixing new parts with old parts. Never ends well.Why would a customer pay up to $2000 for a used, partially rebuilt engine? An engine they can buy new for around $3000.
Most likely you will find as you get busier and build your customer base that going in this deep on engines is not worth the time, effort, focus, and risk.