Usually the powdercoater will remove the old paint by bead/media blasting. So you don't need to do sanding, you just give them the frame and they do it.

You can buy Kilo TT, as well as other frames from BikeIsland. If you're starting from the ground up and do the build yourself, $700-$1000 should get you a bike composed of so-so and average parts. How much have you budgeted for tools? You'll need a few.

Buy a new, complete bike in the range of $700-$1000 gets you better everything and it so much more cost efficient it's not even funny.