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I think you can still find good cars for little money. I do beleive that you have to search for them. I just bought a 71 911T targa for a few(less than 5) thousand. I realize its not an S or E but the T would make a good track chassis if you are redoing all the mechanicals.
The engine had been rebuilt to S specs with all the upgrades(SS heat exchangers, tensioners, etc). The car has almost no rust(even the batt boxes are original and solid). The car even had all the records until 5 years ago when the second owner bought the car and let it sit. It does need paint and needed a tuneup badly. Mechanically it runs great and its definately fast. I just can't wait to get out of grad-school to really have the time and money to fix it up.
Basically if you are not in a hurry to buy, take your time and you will find a great car in your price range.
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