if you are able to do body work and paint yourself, then a salvage can be a good deal as long as you realize resale will certainly suffer and plan to own for a while. I got a good deal on a low mileage mint condition (except for the frame and front end damage) durango a while back. the frame work cost less than a grand including tow to and from shop and i took care of everything else, in the end i saved about $5G on a truck worth about $13K. The inspection process consisted of arranging an inspection at a state inspection center which took a bit as there are only a few and a waiting list, and providing documentation proving replaced parts were not stolen, IE receipt saying they were new or receipts from salvage yards with vin # from the trucks they were pulled from. There was no mechanical /safety inspection.
I drove that truck w/o problems except usual maintenance for about 4 years. I traded it in when got the tahoe and had to fight tooth and nail with the dealer to get $1k for it, but didnt feel like selling privately where i could get a couple of more bucks for it.
My advice would be stay away from flood damaged vehicles for reasons already stated, try and find one without deployed airbags, some states like NY require new airbag components which will quickly eat up any savings