I know I'm dredging up an old thread, but this seemed to be the most pertinent. I'm looking at an Arrow with a Lycoming IO-360 that has 1600 SMOH, but only 135 STOH/SPOH. Should I only plan on getting another 200-400 hours before needing a Major, or should the TO drag that out?
You do a major because the case needs split, which means crank, main bearings, cam, or something weird like a crack or major leak. The bottom end, if cared for, should be good for 2x tbo or more, especially on an o-360. Cam corrosion from sitting is what usually gets lycos. If you had some assurance the cam was is good shape when they had cylinders off, I would expect it to go another 1000 easily.
That said, have a plan because the crank could split in half tomorrow. As far as valuing it, I'd price it like a 1600 hour engine. The top did add life to it, assuming it was done correctly, and not as a bandaid to fix low compression on an abused or neglected engine.
How comfortable you and your IA are with an engine over TBO is a big part of it. The club I'm in changes engines at tbo+10%, as they're scared of the liability of pushing them any farther. I'm of the belief that an owner should go as long as he's comfortable and the engine isn't "talking to him".
If you haven't found this, it's worth watching (at 1.5x speed):
Opinions vary on Mike, but I think he gets more right than wrong. TBO is his favorite axe to grind and he's written/ said a lot on the subject.