Hello and welcome to 2CarPros. This is one of those tough questions. If I were doing the work and there are no other oil or coolant leaks or issues, I would replace just the head gasket and related service parts. Like the timing belt, tensioner, oil pump and the water pump because they are already out in the open and are behind the belt.
The reason being that it does take more time and money to remove the engine, clean it and then replace the other seals if they are not causing an issue. Plus you noted it was a $400.00 car, doing everything on the engine can easily cost three times that in parts and labor and these days it's unfortunately real easy to get parts that are worse than the ones already installed.
On the flip side, if there are other leaks or a reason to remove the engine, like a transmission front seal leak or evidence of a rear main seal leak or maybe an oil pan leak, then I would pull the engine and replace it with a re-manufactured engine. That would get you a new engine with a warranty and in all probability would be cheaper than going through your engine to rebuild it. Or a lower mileage used engine is another option in that case.
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Sunday, April 21st, 2019 AT 4:22 AM