Bummer- everyone reading this thats owned a high performance boat winced when they read this.
Welcome to the joys of high performance boating.
As one guy said you bought a 7 year old ride with a blower motor in it.
Forget about the engine and move on- you bought as is. It sucks, but it is what it is.
At this stage Id look for a take out or low hours naturally aspirated engine and replace it wholesale. I would NOT recommend rebuilding what you have unless you strip everything down completely. You dont know how its been driven a blower can hide lots of worn out stuff like valves and rings etc..
You have to go inside it thoroughly and you will likely end up with a cascade effect of just rebuilding everything- this will probably take your ride out of commission till the end of the season at this stage.
You can get a good deals on engines from reputable guys right now, or simply pick up a cheap crate engine and swap the marine parts out and a quick weekends in- out job and you'll be back on the water and then you can take the time to go through what you have and decide what's salvagable - while you are boating.
In the last decade Ive had a middle of the road HP wise "hot spare" ready to drop in when something inevitbly goes boom so I can be boating quickly - this blown engine should become you new hot spare.
My advice is to stay mid HP and fuel injected so you can go boating and have fun- Frankly- youre never going to be a "big dog" in Havasu so just enjoy it for what it is a great performing cat/deckboat.
Hold out dude - youll make it through this and it will get better.