I have bought 2 RECON title Mercedes in the past, One 190e, and One 500sl, both were repaired properly, ran and drove like new. I traded one for a classic porsche with clean title Straight, and the other for a mint Jag XJ6. My opinion by experience says it depends on the damage, and the repair. Done right, they are great drivers. To the collector, that is an obvious downfall. Most folks DRIVE these cars anyway. My Insurance carrier never had any problem insuring them at all.
I would definitely buy more like these if the price is right! Keep in mind, it's all in where your headed with the cars. Many are worth more apart than together, capeche? (Turning or flipping for profit)
Good Luck on this, be a skeptic when looking at every one that has branded title.