The way to "buy an old frame on the cheap" and convert it is to get something that either has minor problems like no tires, or that the seller is ignorant of the potential value. You then remove the geared items and swap out the wheels to fixed.

The initial cost should be less than $75 and preferably less than $50. Wheelset w/tires and cog should be around $200.

Total cost once you're done should be around $200-$250 and will (ideally) net you a very good steel frame with a solid wheelset that will be fun to ride and look somewhat unique in a sea of Kilo TTs.

This approach requires time and luck. I've only had the opportunity to do it twice this year and I live in an active market and spend a lot of time on craigslist. Old road bikes are getting too expensive for this to work as well as it did in the past and it's generally better to just buy new and complete online. You get a new bike, available in different sizes and geometries and you don't have to deal with craigslist idiots.

http://www.bikesdirect.com/products/trackbikes.htm


TL;DR Buy that Univega, offer $50 and then offer $75.