Low stake rebuy tourney's have a seperate game theory attached. During the rebuy period, the allins serrve a dual purpose: 1) you might get lucky and draw out, and 2) for a small fee, you get x number of additional chips in play, to potentially win later. For example, in a 3 dollar rebuy, if you go bust, it's $6 to get right back to square 1, and there's an additional 3k chip stack in play. This, at least in theory, is why you see so much crazy play in the early stages. In order to adhere to correct BR management and play effectively, I usually figure that the equivalent of 5X the buyin price, or $15 for a $3 tourney, is what you should budget going in. That's a double buy at the get go, 2 rebuys to hold in reserve during the 1st hour, plus the addon at the 1st break. I limit myself to that, otherwise it can get ridiculous. I've seen players spend $40-45 dollars trying to build a lead in a $3 rebuy, but to me, that's just wasteful. I usually play tighter than most early, and look to score big on a couple premium
hands.
They are not a game I go for often, and they are def. not for the squeamish of faint of heart, but they have a HUGE upside if you play smart and don't get sucked out. Last time I played one, I caught pretty lucky, and turned a $9 investment into $180 payday. Pretty good turn for an afternoon of my time.