This is my first time rebuilding a rotary, From what I can see from other people's post this is normal Wear on the housing. Am I correct or do these need to be resurfaced?

 

More pix please. Especially of "power" side and spark plug area.

 

Rotor 1

 

 

That wear looks normal, but that doesn't mean it's a good idea to reuse them. Chatter marks like that accelerate wear. What's the mileage here? And how many more miles do you want to get out of the rebuild? If you're going for a like-new restoration, I'd look for better ones.

 

135000 mi on them I would like to get 20000 out of them by then I will put a swap motor in and do a more indepth rebuild

 

It looks like it will run, but the cost outlay to get it to run will not be worth it in my view. Seals and gaskets to make it worth closing back up will also make it like throwing good parts (and money) after bad.
Even if you only have a 20k mile life goal. I would look for some better used housings, and measure those irons after cleaning. They look OK, but measure. I assume the rotor slots are not too wallowed out based on how the rest looks. Check that also. If you got better housings you might build a decent running 100k life engine with the rest of the parts and new OEM seals. That would buy you some time to accumulate parts for a better build. Also budget for new oil and cutoff seals. They are not cheap.

 

Ok my goal was to get this engine running for at least a year or so to save up for a some new housing and a better rebuild this rebuild is more of a get it running better to limp along for another year. To recap on what you said if I can get some better housing I should be able to get about another 100000.

 

There are no guarantees with used rotaries. 100,000mi seems optimistic since many brand new engines didn't make it that far. Napkin math, you're spending 1500 on seals to do this rebuild and at some point in the near future you'll spend 1500 again + the cost of housings (2000?). Money out the window. Do it right or do it twice, in my opinion.

 

Not should, might. I agree no guarantees, as with any engine rebuilt with used parts, rotary or not. Please don't jump to expecting a best case outcome from what I said.

But, if you get better housings, and possibly pay for a refinish ( money well spent in my view), and all the other parts measure out well, then yes it is feasible to see 100k on a used part rebuild, especially if you use the knowledge gained here by many on care and feeding of these cars. When these engines (and owners) were new, the cards were stacked against long life, both with factory setup and owner/dealer ignorance, even on an S2.

My point is that a few hundred extra bucks can multiply the life of your rebuild.

 

If you want a restoration that looks like the new one, I advise you to look for the better one.