As someone that has been boat shopping for over 3 years, I agree with the other posts about increasing the budget, or looking at older boats.
While you might actually find a 31-35 foot boat in the 98-02 time range for under $40K, it is likely to either be a salvage vessel, or one in need of serious work.
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USCG Licensed OUPV Captain, ASA 101/103/104/105 Certified Instructor - Also certified in Recreational Marine Electrical Systems