You may wanna gaze over at the ford 300, and speculate. \:\) Readily available with OE efi, plenty of low end grunt. If it can tow a heavy load via a full size truck, it would have no problems motivating your buggy. Find the right low mile efi engine, you'd save some cash, not spending cash on aftermarket parts to pep up that 250.

Just a thought.

Back to your 250, a little more compression probably wouldnt hurt anything, for what your after.

Keep us posted as you go, sounds like an interesting project.