Budsgunshop.com has CPO 226s for $500, delivered to your FFL. That's probably the upper end of what you're looking to spend, but if you consider that you're really only giving up 1000-1500 rounds or so for a gun with a repuation for reliability and accuracy, it's probably a better investment (long term) than a $250 gun and $250 in ammo. Plus, it can double as a house gun, and you can never have too many house guns.