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I just bought a '71 T. As Marc mentioned, the engine rebuild is going to cost some bucks, but the biggest problem with the early cars is rust. Rust is like cancer (you never know if it's still lurking), while engine problems are completely isolated.
The other thing to consider is what you're buying the car for. No 911 is really "cheap." I looked for the '69-73 models because I like the feel of those cars. Lots of people told me to buy an SC or later; even with the higher purchase price, you could potentially save much more money (and headaches) by buying a solid car to begin with.
Take the time to read about the cars, look around, and find a good mechanic and body shop.
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