Fix or sell

This type of question comes up a lot. Only you can really decide that, based on factors we can't possibly know - condition of car, your attachment to it, wear and tear, mileage, etc. If you like the car and it's in good condition otherwise, it can be worth rebuilding a motor. However if you have to farm all the work out, it can be more than a car's worth. A motor with a bad short block needs to be hot-dipped and magna-fluxed to check for cracks, so this would be a full rebuild, and not just slapping a gasket kit and rings on it. A cheaper alternative might be going with a remanunfactured engine or a low-mileage used engine. Used engines are always a gamble, so stick to one that has a known history.

Its not worth much to sell for needing a engine, then again it could still need more work later, of course a known good used engine is cheapest way, but could be bad too or go bad soon there after. Tough choice, a new engine cost more than the car is worth after its installed.

If doing the engine repair/replace have the trans checked out too.

I vote for sell. Part it out.

I'm going with KenF here as some folks love their clunky, loud, older gen Foresters as "Jeepy". Chasing a used motor is easy. While it's out replace its head gaskets and you should be ok. I would NOT rebuild yours!

Being an X kinda meh but if you do most of the maintenance and it’s rust free and it doesn’t need anything - I would advocate for finding used and doing preventative maintenance and put it in. Where are you located? In the south?