Um, you'll need to know how to ride a bike and have all the appropriate paperwork for if you get stopped by the police and for crossing borders...
I'm very enamoured of my Honda Tornado 250, which has all the oomph required to get around Peru, Bolivia and Chile (I've put about 10,000km on mine in those countries) and would recommend it. The police use them and there's spares all over.
Dunno about Peru but in Chile mine cost 2,000,000 Chilean pesos - roughly $3,600 US. Don't know if that falls into the "cheap" category...
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