There is a book called "Lemon Aide" it is a book on second hand vehicles, read it before you buy a second hand car. It lists the best and worst cars, warranties if any, and the design flaws of cars...
All the best on your car hunt....
Honda Preludes a good car, but the year worries me. Its pretty old. How many miles is on it? You probably could get a 1999-2000 Honda prelude or civic or many other similar sized cars for that price.
Also you said you need to rebuild the engine-really-stay away from this. You can get a better first car for that money. I helped my niece find a first car recently. She had around 3000 to spend, we found her a 2000 Ford Focus for $2700. Its ran good for 6 months now-no major problems.
NO! You can get a much better car for $3,000. You can get a much better car for $1,000. Shop around, put in your research. Check out www.kellybluebook.com to see if I am right, it will help you value any car.