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You can turn a non-M E36 into a decent club racer with that kind of money.
E30 is a good choice too, but those who mod E30s ultimately turn them into E36s under the skin.
There's a local 318ti for sale, with full M3 engine (sharked S50), drivetrain and suspension. Great fun to drive, and only $12.5k. I'd buy it if I had the money.
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