I paid $2000 for my Pro3 starter that had a cage but no other race equipment and just added a $0 to get it PRO3 legal. You too can build one to your liking for about $2000 + 0 or $20,000. Mike Olsen said he built his for less than $10,000. And yes you can run your first season in a $8,000 car. You need to pay about $2500 for a starter car, $2500 for a cage (minimum) $1,000 for seat and harness, $500 for tires, $400 (minimum) for brakes, $50 plus wire for a kill switch, $25 for fire extinguisher or $500 for a system, $1500 - $4000 for springs and shocks, and the list goes on. So $8500 plus to run on a good street engine and sport springs and shocks for the first year or so. Or shop around and spend $12K for a built car. I too would love to build another but I know I have $45k in receipts somewhere (don't tell the missus) spent in my first few years. If you want to persue building a car there is no better support to be found than the PRO3 group. Get on our bulletin board and down load a bunch of information and don't be afraid to ask for help. We want more new cars and drivers!
Back to your original question - how do you buy a good E30? Look for the obvious, is it in good shape, no rust, minor dents, straight frame rails ahead of the shock column, front fender or hood damage is ok, but rear damage is hard to fix, interior is not important, glass is cheap, paint is only $600 for race quality, so look for:
Decent compression
No rod knock
Clean oil, look in filler cap for sludge
Clean smooth shifts
All body panels have a tag - fenders, hood, trunk lid, doors - if the VIN number shows and matches they are original - good sign the car has not been crashed
All 'is' models have limited slip - but a LS diff can be had for about $400 - there will be an "S" on the diff tag along side the ratio. You would like a 4:10 but many race on a 3.73.
Brake rotors cost about $70 each
You can rebuild the calipers for about $25 each
You should flush the brake system and put in good race fluid $30
You should replace the timing belt, water pump, idler, cam seal unless there is a recent tag. $300 and a day labor
You should replace all hoses $50
You should replace the front control arms as the lower ball joint is part of this and you don't want to crash as a result as the wheel can crush your foot. $360 / both sides
I would recommend if you find a potential car have a buyers inspection done at Strictly BMW, West Werks, TC Motorsports, Adair Racing in Spokane, or Lovett Motors as each of these are involved in PRO3 racing. It is $75 - $100 spent that can save you $1000s.
You want a 1987 - 1991 2 or 4 door sedan that has a tach that goes to 7,000 RPM ('i' motor with no cold start injector on the passenger side of the intake manifold and no 5000 RPM tach like the 'e' motor)
I hope this helps. See
http://autos.groups.yahoo.com/group/pro3-racing/ and
http://www.bmwpugetsound.com/vbb/forumdisplay.php?f=39
Or give me a call - Greg PRO3#120