I'd go about it differently, if it were mine. Spend virtually no $$.. put it back together and ride it. Listen to it, see what else needs done. Compression test is real indicator of head, valve work.
I hate seeing people step into their first tear-down and end up with a 'basket case' project listed on craigslist.
If you get some riding in, it might give you motivation to start purchasing all the parts for a rebuild. Then when you have time.. tackle it in a prompt fashion.
1st timers tearing into something, then having to order parts, then doing the next step, then waiting on more parts.... you get the idea. Some times those projects end up collecting dust.
Us older guys have been there, and usually have more than 1 bike, so we can wrench, and not have to stop riding!
Anyway.. just another idea.