Never buy an ubercheap Android device. Android is awesome when done right, but since anyone and their grandma can make one, sometimes that draws you in with their low low prices. I got a $60 4" tablet as a music player on a whim, and I've spent the past two days hoping it would magically decide to all of the sudden not suck. The same goes for phones. It's better to get a phone that was last years' high end phone and/or refurbished than to get a newly released brand new budget level device. I took an in house census recently, and realized our household has 17 Android powered devices, from Cupcake to Jellybean.(Probably half of those get regular use weekly, some are now more sentimental than useful, some are even probably sitting at the bottom of our kids' toybox). I've modded, rooted, flashed, re-flashed, and re-flashed again custom ROMs, took a stab at compiling kernels, and even published an App, I've come to reluctantly realize I might be a slight subject matter "expert" on the topic of Android devices.
Since most new devices ship with Ice Cream Sandwhich or higher these days, a great thing to watch out for as far as performance is RAM size. Android 4.X+ just seems to want 1 gig of RAM or more. I've seen ICS and Jellybean on half meg devices but they are almost always janky, while occasionally giving illusions of usefulness. That doesn't stop me from trying a new ROM for some of my aging devices when a I notice a new one on XDA.
I'm sending my latest acquisition back to Grandma... and I'm replacing it with a "major brand" refurb last-year's model. It did cost a bit more than $60, but it has a ton more features too, but the feature I like the best is that it actually works.