In this buyers market, I would value that car below $10k, more like $8K but that's just me.
I looked at a salvage title car when I was shopping. My bank would not do an auto loan against a salvage title.
I agree with the above comments and only buy it if you don't ever plan on selling. You're limiting yourself to cash buyers with the salvage title car.

I think the market is too good right now to even consider that car.

85 coupe would make a pretty good track car... but 8-10K with a salvage title

I wouldn't touch a common-place car with a salvage title, unless it's an shocking bargain - practically theft, not just a "really good deal" - or destined for a racer. Even if you are today prepared to accept the restrictions on resale (very hard) and insurance (difficult to get comprehensive or collision), things change - you might need to sell it unexpectedly, or to change insurers.

A mid-eighties 911 is a pretty common car. There's enough around in really good shape for fair prices, even bargains. $14K would be a good price, but not a huge bargain, for that car with a normal title.

A prior poster said he'd prefer a properly repaired car with a salvage title to an improperly repaired car with a normal title. I'd say no thanks to either one. How about a properly repaired car with a normal title, or better yet a car that's never had to be repaired or salvaged?

Remember, you never completely know what you're getting with a used car. So you may think "I'm only putting $12K into it, a salvage title is okay, I won't have much money invested and I'm keeping this baby forever". Maybe in 6 months you learn it needs an engine rebuild. Suddenly you have the choice of having $22K sunk in a salvage title car, or trying to find some other sucker to buy it. Will probably leave a bad taste.

I saw a clean-title '87 coupe today that sold for about $11K.

An acquaintance bought an '89 Cab for $11K two months ago.

This is the worst Porsche market I've ever seen. Nothing is selling unless the prices are near-giveaway.

There are so many incredible bargains out there, you shouldn't bother with a salvage title car unless it is at least 30% off what other equivalent clean title cars are selling for.

YMMV

A few notes here...

I bought a BMW 318is for one of my project cars (1992). It was a salvage title, and the cheapest E36 I could buy, because I was looking for one to tear apart for the BMW 101 book. Values have certainly dropped since then, but I wasn't terribly caring about resale value there - the car was considered expendable. Same thing might be thought about a track car. I got the car for $4500, which was about $1500 below blue book trade-in. The young girl I bought it from (she was about 21) had a really difficult time selling it (she put salvage title in the ad), but it was exactly what I was looking for. Came in with the trailer and took it home in one swoop.

I bought a Carrera drivetrain today (engine + tranny) with 81K miles today (brokered through Robert at Dutch Treat). I paid $6800, which is top dollar for this setup, but I was able to hear the engine run, I had Robert run a compression check on it, and it also had paperwork that backed up the 81,000 odometer reading. Plus the setup was 1.5 miles from my house, so it made it a no brainer. Paying about $1K above "regular" price was worth it in this case - I don't have too much time to muck around. The fan, intake, housing, etc, will have to be blasted and cleaned up, and some hoses and lines replaced, but this is a given with any used engine.

If the drivetrain of the car is worth about $6000 average, and the chassis about $3-4K, then these cars should be selling in the $11K range minimum. Salvage titles usually don't affect engine performance - just chassis integrity.

-Wayne