Agreed. I don't think I would EVER buy a salvage bike. There are way too many things that can be wrong with one, and unless you are doing a ground up resto on it, you may miss something. Sometimes it's a very minute detail that can end up causing you to lay it down and oh, say, DIE!!!
There are plenty of used bikes out there. The smaller the cc's you are looking for, the easier it is to find, too. I've been helping 2 friends search for smaller scoots that they can get with part of their tax refund. One is looking for a Ninjette (Ninja 250) for less than 1500, and the other a small cruiser for the same price. Where I'm at in PA, the small sport bikes are really easy to find. Smaller cruisers are a bit more difficult, but definitely out there.
Definitely check your local craigslist for bikes. Other resources are smaller auction/selling sites, cycletrader.com, or you could even visit a local shop and just ask them what they have in stock or for places online or in the area for something to fit your budget.