Picked up the generator today from the mechanic. Parts and labor was just around $1000. A lot of inexpensive parts and 5 hours labor. I did the removal and install. When I picked it up he demonstrated a bench test, put it under load, a couple of electric heaters and a window AC unit. It held voltage and Hz.
This mechanic has been working on the Onan generators for 40 plus years and recommends Valvoline VR1 20w50 oil. This is a high zinc content oil which is required for these engines. The valve guides are cast iron and need the zinc for lubrication. Reliable replacement valve guides are not available for these engines so they require a head replacement if the guides fail.
So at the end of the day the 2 big items like I mentioned were the belt and tensioner, the intake manifold and the coupler between the engine and flywheel. There were 12 other items that were under $20 dollars each.
Luckily we are in a location where I could do the work and the mechanic was near by.