I'm thinking of buying a spare engine for the 2.1 vanagon in my
future...

Can I do anything with this on a bench in a basement? I live in a
rowhouse with no garage... I'd have to winch it through a trap door
to get it to basement level. There's not a ton of space down there,
either.

Is an engine stand necessary? My work area where i can leave it on
the bench is 3'x5'.

I don't think I would do a full rebuild... just check replace the
main and rod bearings, and probably rebuilt connecting rods, if
everything looks ok on top.

This is the engine...

No oil consumption, always run on Mobil-1 Synthetic.
Looks like hell, lots of rust,(NY car since new) but runs like a
champ, pulls hard. Never overheated, maintained by professional
mechanic. Flywheel good, lo-mile clutch included. Perk up your
Vanagon, Transporter, or Syncro with a genuine German VW powerplant,
ready for another 100K! This is one of the few good motors they put
in a Vanagon...I'm changing to Subaru for better economy and
turbocharged power.