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Looks decent, I'm not sure if 3500 is the right number though. what are your plans for it? for me that's something I'd gut and turn into a track rat. I'm sure you're already familiar with all of the M5X pitfalls, the big one is cooling system/water pump. other than that it's the usual BMW stuff: valve cover gaskets, oil pan gaskets, etc. Interior build quality on E36s is sub-par, that's why I'd gut it and track it. If you're looking for an M5X powered car to turn into a nice street car, go for an E46.
the other thing to check on any E36 or E46 for that matter is the rear floor where the subframe mounts. The floors have been known to tear from stress (I have seen this firsthand). There are reinforcing kits out there to prevent this from happening, I'd say it's a must on a track car.
good luck with whatever you choose to do.
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