It depends on what they're defining as a "salvage title". A lot of people refer to rebuilt titles as "salvage titles". I've bought, sold and reconstructed a few "salvage" vehicles.
A true "salvage" title means that the vehicle you're buying has been deemed by the state as needing reconstructed in order to be put back on the road. I've bought several such vehicles, reconstructed them and obtained legitimate titles that are good for registration. In NJ, this requires an inspection by the State Police where they take your car into a garage and pick it apart as you wait. You are ultimately issued a "clean" title with an "R" in the top right corner indicating that the vehicle has been reconstructed. Again, some refer to this as a "salvage" title, but is good for registration.
In general, however, these "R" titles are not transferrable from state to state. If I were to buy a "salvage" vehicle in any state, I would make sure that it's been reconstructed and titled to the state's satisfaction and that the title I get upon sale is good for registration. I would buy the vehicle with 2 assumptions: 1) I would never want to sell it (because the salvage title would scare most buyers away) and 2) The price would be substantially below retail given the risks associated with resale.
I would put the value of a properly reconstructed vehicle at around 2/3 of NADA retail at most.
