okay so about 3 months ago I took my turbo out to delete the warm up valve and I noticed that I had a lot of back and forth play in both wheels and I seen that both wheels have touched each housing I have not rebuilt it yet and it is still building boost fine,I am seeing about 24 pounds of boost with the red line disconnected from wastegate but I was wondering from you guys if you think I should just buy a used turbo and rebuild that seeing how both of my wheels have touched the housings I'm not sure if I rebuild my turbo if it would still lack power seeing how both wheels are scraped up kinda bad or if I just bought a used turbo and rebuild that I'm not sure I can get a rebuild kit for $40 but there is a turbo on Craigslist by me and Rochester for 300 or best offer with only 69000 miles on itany help would be greatly appreciated I need to fix this problem fast before it ruins my entire motor

 

If the other one is actually in decent condition then you would probably be better of going with that one in the long run.

 

Welcome to FTE !! Now since both wheels have come in contact with the housings that is NOT good and I would do something about it sooner than later. Because when them wheels come in contact with the housing it is like a grinding wheel and all the little bits of the wheel are going into your motor from the compressor side. Also at ANY time one of the blades from the wheel could be ripped off and cause major damage.

So I get get your hands on another turbo, one that doesn't have much play side to side and in & out and rebuild it. Do NOT buy some cheap Chinese rebuild kit. They are JUNK!!
RiffRaff / Clay sells only the "Good Stuff" Also you should replace the bolts. Read some of the other treads about turbo's to see why. Garrett GTP38 Journal Bearing Rebuild Kit - Riffraff Diesel Performance