ralph_s said:
Drew would be a good member to weigh in as he has tons of recent experience.
That would be me, I believe.
I've had my Bugeye (the Tunebug) for about 3.5 years, and it's been off the road for 2.5 of those years. I bought it as an original driver-quality car, though it hadn't really run much since the late 60s and was mechanically a bit tatty. My original plan was just to drive it around, but the motor and cooling system needed serious help, so off I went into a full mechanical overhaul -- which turned into a 1275 build up and disc brake conversion.
When I bought the car, the fellow who looked it over for me (an auto restorer with lots of LBC experience) figured I'd need to put in about $10k to restore the car. Had I not gone for a high output 1275 build for the car that estimate would have been right on the money. As it is, I'll be well over that figure by the time I tackle the bit of rust here and there. No complaints, though, as this is a hobby for me and I never figured I'd make any money on this car -- and it allowed me to pay-as-I-went.
An advantage to Bugeyes is that they are simple cars, and the parts are relatively cheap. They made lots of Sprites/Midgets over the years, and many parts interchange (I've got the motor, transmission, and brakes from a '74 Midget in my car). These upgrades don't do much to hurt or help the values until you get the the upper extremes where the all original unrestored or perfectly restored cars live. I've kept all the original parts (including the original motor and transmission), so the Tunebug could be brought back to stock with a minimum of fuss.
Bugeyes have seemed to hold their value well as well, so you do get more of your investment back compared to the later cars. Others here have given good advice as well. If it's a car you really like, then it's worth having some fun and saving another one.
PM me if you're interested in more specific cost issues. I was a bookkeeper in a former life, so I've got complete records on what I've spent and I'd be happy to share.