They make great track cars but have issues so do some reading on them. First thing to be done is cooling system and head studs and new gasket.
OBD1 car you can put a second fuel pump in with ease to prevent fuel starvation in the corners. Building it to what spec? At today's prices your looking at 5K at low end. Nice thing is there are tires for it on stock size. The bad part is find e36 parts these days is getting tougher, they used to prevalent on craigslist all day for 500 bucks now anyone that has one thinks they are worth $$$. Do a good underbody inspection for rust.
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