Hi,
I have always had better success using basswood than balsa or any other type of wood for modeling. Midwest Inc (
http://www.midwestproducts.com/) sells a wide variety of modeling woods. Basswood has almost no grain, does not tend to split, and bends relatively easily. I use 3/32 and 1/16 thickness sheets of basswood and for just about everything, using 1/16 x 1/16 and 3/32 x 3/32 strips for chine logs, gunwales, etc.
Midwest's model boat kits are very good, and were a great way for me to learn the basics of model building. They have very good tips for how to do everything from make rigging look authentic to drawing lines on basswood to look like a planked deck.
Bluejacket Shipcrafters (
http://www.bluejacketinc.com/) in Searsport, Maine is also an amazing resource for model boatbuilders--they are a veritable ship chandlery for the model builder, selling basically everything you would ever need to build a model boat and then some! I haven't tried their kits, but suspect they are a bit more difficult than Midwest's.
-Trevor