Tangential to my interests as a DIY musician and recording artist, I also like to buy cheap guitars and fix them up with the intent of making them comparable to instruments that cost far more. Personally, I have never played a $2100 instrument that sounded seven times better than one that cost $300, as I tend to think the cost-to-sound ratio plateaus at a certain point.
I paid $83 for this instrument on eBay, new. It even came with a gig bag and a patch cord. Granted, the seller did give me a discount because the listing had incorrectly stated that it was a baritone. When I got it, the nut was terrible, such that anything on the first few frets was not intonated correctly. It also wouldn't stay in tune worth a damn, and the pickups sounded muffled. However, the body, neck and fretboard were decent, so I kept it. I then replaced the nut, the bridge, the tuners, and the pickups, all with off-brand parts at a total cost of about $60. I also used a jewelry file to smooth out the sharp frets. It now plays and sounds approximately as well as my actual Fender Telecaster for a fraction of the price.
My point is that you don't need to spend a lot on a guitar to have yourself a decent instrument. Sometimes it just takes a little bit of work.
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