A lot of good advise so far, lots of experience here keeping the old iron running!
Several things to consider...
Find something that will suit your needs for the long haul. Some day you will have your own place, possibly with some acreage, so plan around something with some room to expand it's usefulness.
Some features you will wish you had, power steering, and live PTO/hydraulics.
Power steering is real handy, and practically a must with a loader, should you ever need one.
Live PTO/hydraulics comes with a 2 stage clutch. Without this feature, the PTO, 3 point or any other hydraulics will only work when the clutch is engaged or the tractor is moving.
When you find a prospect, do some research on what features it has. A model number and some online research will give the answers. Tractordata.com is a good source.
Buying a non-runner has one single advantage, price! You don't want to pay over scrap value, $100-$150. Tires are also a major expense and consideration. Good tires are sometimes a deal maker. So even if it's a non runner, if it has good tires it will be worth considering.
Estate sales are a good place to find treasures, just don't get caught up in a bidding war. Finding something already in good shape can have major advantages. Even though you are looking for a project, finding something already in reasonably good condition has it's advantage. Spending 3 to 4 times what the finished product is worth is just part of the hobby. Letting someone else spend it for you is a real plus! Don't be disappointed, there will always be something to do on it after you get it home.
Another advantage to buying a running tractor, it gives you a chance to drive it around, put it through all the motions, find all the problems so you can have a game plan. Nothing more disappointing than splitting it twice because there was some unforeseen problem that could have been fixed while you were in there the first time.
Some deal killers to look for, broken castings, like freeze cracked blocks or transmission/differential cases, castings that have been broken and brazed/welded,(pay close attention to the front axle assy attachment to the engine) and missing components.
Have fun, choose carefully, do your homework! Whatever you end up with, the first purchase you will want to make, a shop manual! It will more than pay for itself in mistakes not made!
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