Coparts.com? restoration questions

[TMagda]

I have a couple of questions about restoring a car. I have never done a restoration before but I am somewhat mechanically inclined. For some reason I am thinking a good candidate for a first attempt would be an '40's MG. They are small, look fairly simple mechanically, a good parts availability, etc. My goal would be to get to driver quality, father and son project. I have stumbled across a site called coparts.com that auctions cars with salvage titles. They currently have 3 MG's listed at prices that are low enough (so far, its bidding) that if I totally screwed it up it wouldnt really matter to me. They have "water damage". My question is would a salvage title create future problems registering or selling the car considering it will restored, including rebuilding the engine? What could be destroyed assuming the car was fully submerged that would not be repairable during a restoration? The cars look great in the pictures, and I would take a look in person if the prices were to get too high. They are located in NJ. I know this isnt much info to start, but I'm clueless.