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I say GSR engine. You can always turbo later. The GSR compression is not that bad to turbo. There are so many misconception about mid range compression + turbo. Get a GSR swap and start with a higher base HP.
An LS engine is not bad neither but your $3500 will not be enough with an LS plus turbo especially if you get a turbo kit. The turbo kit alone will run u dry. Are you doing the labor yourself?
If you want to be a little different, try a B20 swap. It has a higher torque base and is a great platform to turbo as well....
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