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one thing to think about is if you're going to want to mod/swap engines, you need to start with something '75 or older.
I think a C2 is a good idea, especially if you can find (and insure) a salvage title. Since you want street legal, you have to worry about insurance.
This doesn't have to be your last car, so looking for something to get you through a couple years of DE/TT is reasonable imho. With that in mind, the sky is the limit. A solid SC or Carerra with safety and suspension would be great. I personally don't mind being low on power (I'm scared of going fast). The trick in your search is that a lot of track prepped cars are not street legal, or are just barely so. You might want to think about starting with a more mild prep or stock car (depending on the price) and going from there.
I'll mildly disagree with Jack on one point. While you don't need to necessarily look at a race class, I would be on the lookout for what groups you want to run in and how their classification systems work. If you TT, it is more fun to be running against somewhat "equivalent" cars. For instance I have been able to be competitive in POC because of the limited prep level on my car, whereas Jack gets bumped way up into running against seriously tweaked cars. But with a different organization, things are different.
While you might not want that *today*, in the near future you might want to be in a "competitive" TT environment. I can say that I had a lot of fun doing STS this year, and had to think differently on occasion based on needing points, etc.
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