Lots of people rebuild wrecks. I've done some of it, used some as family cars. Trick is to get a car with the right things wrong with it, i.e. easily repairable. Bear in mind that it costs the same to fix a very late model car as it does an older one, at least in labor costs. Problem is buyers pay rather high prices for wrecked cars. There are a lot of people from south of the border that buy wrecks and take them out of the country to fix up where labor is cheap. AFIK those cars are sold in those countries and not brought back here.
As far as quality of the rebuilt car, remember the car was running when it was wrecked, so the chances are it will keep running, assuming it was repaired properly.
As far as salvage titles go, the rule here used to be that after rebuilding the car was inspected and give a good title if it passed. Now I think they go on a percentage of damage, if below a certain percentage it dosen't get a salvage title, over that its gets a nonremoveable salvage title, but all that may have changed by now, this state spends a lot of time worrying about various aspects of used car sales without accomplishing anything.
Remember, insurance companies have cars rebuilt all the time, so it's not just doubtful people doing it.
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