Well, $500 for a running M is a decent price. Paint is for the eye of the beholder. If you are going to work this, paint would be way down on the list of priorities. Tires are going to be your big expense, and expect to sink at least $1000 in them (tubes, mounting, etc).
If all she needs is a tune up and some other minor things like valve cover gasket, seals on axles, pto seal, brakes, and the like, you will have another $200 - $300 depending upon what she needs.
Other than that, get her mechanically right, and you will have a good tractor for the uses you posted. If she needs rings and bearings, that is a whole other ballgame. Best I have been able to do an engine for is $1000 with new parts, and that is me doing all the work except for boiling the block and turning the crank.
Plan on $1500 without knowing anything else. If your wallet can stand that, then I would say "go for it".
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Today's Featured Article - Pitfalls of Tractor Engine Rebuilds - by Chris Pratt. The first pop after you have put the machine together with your own hands is exciting and pleasing. The whole experience can be marred if one moves too fast and makes too many assumptions that they can just use "as is" some parts they should be closely scrutinizing and possibly attended to. In such cases, rework makes what could have been a fun project turn into an irritant or even a nightmare. Minor Irritants To give you an example of an minor but irritating proble
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