I would say that if the motor is checked out, and all seems good, has good oil pressure, maybe some new bearings thrown in, or some other basic freshening, then just get what you could out of it. Make as much horsepower as you can.
There is a learning curve associated with 500 HP. And most of the same mistakes that blow up a stock motor will also blow up a built motor. So, begin the build with the supporting modifications needed to make this type of power. Meaning......get the fuel system, the tyrany, the suspension, the tune/engine management, the turbo, the downpipe and exhaust, intercooler, alky injection......whatever. And keep going until you learn how to tune or blow it up. Whatever comes first. Avoid spending any time or money with internal engine mods, heads or cam. Make the assumption that the day will come when it will give in to the abuse. And be prepared for that by knowing that when the time comes, you will already have most everything you need and now you can have a tough bad-ass block built as a whole package. Chances are, you may never actually split the block or snap the crank out the bottom of the oil pan. You are more likely to blow head gaskets and bang up the bearings. So why start with a built block?
When it breaks......spare no expense. Then drop it in and go.
Maybe that will work for ya.