Too much $$ IMHO. If it was a coupe, and it had a recent water pump, the entire timing chain case redone,all F&R suspension rubber replaced (especially the rear subframe bushings!), a good LSD AND a minty sport leather interior & dash, maybe (nice upgrades though - the PO knows what he's doing). Problem with upgrades is that they depreciate about 50% as soon as they're bolted on. That's a fairly harsh setup for a commuter IMHO.
The car is a great commuter. I've seen an overall 31mpg average...I've driven it all over the state, all seasons, back & forth from N.C. as well. Easy on gas, not too much trouble to run. The e30 isn't as refined or 'solid' feeling as an e34 though....fairly harsh ride, short wheelbase, unsophisticated front suspension, etc. I sold my e34 soon after I bought this one, in fact.
Problems I'd take a long look in any M42 are the never-functional A/C system, the cooling system and the timing chain. Rust can be terminal in all the e30 places...behind the front wheels at the frame jacking points/bottom of the a-pillar, in front of the rear wheels, windshield and rear window lower corners, rear shock towers. If you choose the e36 variant, I'd be aware of the paint, interior trim issues, trunk wiring harness, all rear suspension bushings, rust in the lower a-pillar and under the doors and A/T problems.
I paid only $800 for my sedan, though it had nearly 100K more miles on it (266K). Mine came with a bad diff and no A/C. The body was spotless and I had a folder full of records...I figured a used M42 is cheap; so why not? But the motor has lasted thus far ~287K miles. I've had to replace a diff...I put in sport seats....replaced the wheels as well. Otherwise it's all been routine stuff, the car has been a really good deal overall.