New at sailing 16's, competitively and for fun - Willing to take boat that needs a little work. Trailer as well, if possible. Have looked at the ebay thing, spoke w/a few folks in the local fleet - want to throw out a line and see what might bite. Thanks! 
Good Luck.....
Just be patient and you should be able to find just what you are looking for at or below that price. I found my most recent boat (1985, Hobie 16) from up-state NY, freshwater, galvanized trailer, with cat-trax for $650. The boat had sat outside since 1995 and the sails were stored inside.
Plenty of people have old Hobie’s sitting in their yards and will basically give them to you. Just be aware that you will need to replace the standing rigging ($130), lines ($100), and blocks ($150+) if the gear has sat outside for many years. Amazingly, I sold the old rigging ($55) and the old mainsheet blocks ($50) on ebay.
One place to look is on the forums/message boards of the Hobie fleets in NE. Good luck, and let us know what you find.
Jah...
Thank you so much - Have had a few folks email me - One suggested Lake George area - Said they were a few "yard boats" up that way. Planned on having to replace some lines, rigging, what-not...Thanks again, and I am in no hurry, but will keep you posted on what I find. Happy sailing 
on EBAY at the moment with no bids and a starting price of $ 350 is a 1981 H16. The boat is in New Hampshire. All lines have been replaced.