Welcome Aboard OhTex!!!
There is not enough information to accurately address your question:
Model: 1800 (1800 SR; 188XR, etc?)
Outdrive: Alpha 1?
Wiring Diagram: Owners Manual
Outdrive maintenance: Outdrive Service Manual
Engine maintenance: Engine Service Manual
$200 seems very, very inexpensive. I would start by verifying that the floor, stringers and transom are in good shape and there is no rot. If the floor has rot, then the stringers will as well. I would not spend a dime on anything until these are checked out. I would not spend a dime fixing anything if there is rotten stringers or transom.
I don't want to sound negative, but this sounds a lot like 'free boat disease'.