Your info is a bit bad there. The stock exhaust will work absolutely fine. the legions of sohc riders that do the 836 and larger up to 1080 have used the stock system fine. Also, jetting is subjective. Every engine is different, in fact, the 77/78 engines do not always need a rejet.
Second, the cam part helps yes but the biggest thing you can do is get head work done. the heads on the sohc are very restrictive. Opening them up will make a bigger improvement than just a cam.
Everything comes down to money though. cause if you are going to do a build like this right, you should get new rods, new valves and springs with titanium keepers.
Then given that, new primary chains should be installed. You see where this is going.
Maybe this is a project that will continue when able, then in that case, the 850 will work fine. He might just have to change how the breather works to prevent oil blowing.
The ride IS the adventure. The destination is just to get gas!