I’ve had a few clients buy previously used domain names when they become available. If you’ve ever considered doing this make sure you watch this important video from Matt Cutts the voice of Google to the SEO industry about the dark side to spamming and how this may impact the use of a previously used domain. http://youtu.be/lGUw9oS5csI
The bottom-line is that if you do not check to see if your prospective domain has been used to deliver spam, you may get burned. Matt even recommends checking the webmaster control panel tied to that domain and website to look for messages from Google.
If you see all kinds of spammy and questionable links pointing to and from this domain, it is by far better to start with a fresh unused domain. Even if a website is new with all new files, the Google algorithm behind the scenes may be penalizing this domain and you’d never know until you simply could not get placement when you started to use it.
The last two domain purchase I was involved with for transfers only, were both over $10,000 for the purchase. I doubt either site owner had investigated the domain and how they had been used before money exchanged hands. Be careful and when in doubt don’t put your money down go with a new domain.