Originally Posted by Retro Grouch
For a project like this, check out garage sales and thrift shops. You can sometimes pick up a diamond in the rough for really low prices. I used to do a dawn patrol of my subdivision on garbage day and found some useable stuff. Even if the frame's the wrong size, it can often turn into a donor bike to supply most of the other parts that you need. Once you have a frame, under $100.00 (mostly for things like cables, brake pads and handlebar tape) is a do-able budget.
I am always amazed at what shows up in my local thrift stores. Check out this beautiful Raleigh SuperCourse composite bike I purchased for $20.
The main problem with this bike required a replacement of a spoke on the rear wheel that was way too long which had been jammed on the nipple preventing the wheel from being trued properly. After cutting that spoke out I noted who ever put that spoke in had measured a spoke from the left side and installed it on the right side. I did replace the tires and tubes, as they were looking age worn. I also did a complete lube job as it had obviously sat somewhere in storage for a few years. It is equipped with exage components and an SG triple crank. Oh! It's 7-speed which would have made your day! I love this bike myself and it's a keeper.