The only issue with starting low and working your way up is that you will constantly buy the same parts over and over again if you are trying to keep price somewhat in check. Most obvious thing I think of is fuel system, if you start N/A 300rwhp then eventually get to 600rwhp boosted on e85 you are going to rethink alot and spend alot more. In the end I have had a ton of 500rwhp+ cars and defining fast and the seat of the pants feeling varies from person to person. If I tell someone that my nova makes 1200hp and the fastest car they have been in is a stock VW Golf they have no basis to understand the difference.
Do tons of research and build what you want not what 99% of the internet says, that way you enjoy your work and money spent. And as with everything like stated before...too many mods can make the car not as fun to just "drive".