86 K3500-6.5 Conversion

I have a fresh 6.5 turbo that I want to put in my 86 GMC K3500. The truck currently has a 350, TH 400, 4.10 gears and no air conditioning. I know the limitations without an overdrive trans but the truck will never see an interstate so 55 or 60 mph won't be a problem. I have done a few gas to diesel conversions but I am still looking for some opinions and advise. I am going to need a different converter so what should I buy without breaking the bank? I am also wondering what is the best way to go with the exhaust? I am thinking I will be going outside the frame being it is a 4x4 truck. Thanks.