Has any one ever taken a cheap boat (Like the $20 malibu at walmart) and upgraded It with your own motor? I would like to do this but that would require a new radio, esc, transmiter etc. I guess what I'm trying to say is does any one buy a cheap boat for the boat and stuff their own parts in it? Does It save money?

...nope, not really a way to get a fast boat on the cheap.
It is really fun to mod cheap boats though...I've modded every boat I own. It can have frustrating results though.
I started with a Nikko Stingray and moved up to the Radio Shack Caliente 2...got two of 'em.

I also have 2 SV27's, 2 MiniV's, and 2 reefracer 2's.

The MiniV is probably the cheapest/funnest...I guess you might say 'best value' of the bunch...unless you can afford the SV27
that's my 2 cents.

Could you post some links I'd like to take a look at the boats you recomended.

http://www2.towerhobbies.com/cgi-bin/wti0093p?&C=BAB

Ryan

Stay away from Nikko boats. The Stingray looks cool, but has one of the worst hull designs I've ever seen.

Radio Shack doesn't make the Caliente 2 anymore, but they've been putting them on clearance...you can get one for $20 if you can find one.

The MiniV is everywhere...try Offshoreelectrics, they are the best Supplier I have used and have a great selection. Plus they are super-fast shippers. Offshoreelectrics has the ReefRacer, MiniV, and SV27.

here's my Calientes: