I wouldn't get too hung up on a DSLR these days. There are a lot of very good mirrorless cameras out there.
Mine is one of them. I have an Olympus OM-D EM-5, and it's fucking phenomenal. I started on a Canon T2i and then had a 7D with a couple VERY nice lenses. I ditched that stuff for the OM-D. It's that good. It's smaller, more compact, more handy, takes comparable if not better pictures (than the two I mentioned) and has an awesome jpeg engine. Shit, for most casual shooting, I don't bother shooting raw, because if I get it right in the camera, it comes out looking awesome.
OP could probably find a used EM-5 within his price range. The lower end lenses are pretty inexpensive. I have one of the expensive constant aperture zoom lenses, and one of the cheaper longer-range zooms, and the cheap one is sharp as fuck. I can't believe how nice it is for the $100 I spent on that lens.