1992 E36 M42 build questions (5k budget)

[dVeLoPe]

I have a 1992 E36 318iS that I would like to rebuild but unsure where to start..
budget is 5k TOPS on engine as I will only have another 5k to spend on the rest of the car.
im a real big fan of price to performance but will consider spending more on certain things..

Will this engine be capable of over 300 rwhp?
should I go turbo or supercharger?
where do I start?

Has 2.5 inch exhaust from the stock headers back to a magnaflow muffler and a k/n filter as only modifications
also forgot to mention my friend is a mechanic and has a shop within a mile of my house that will lend me tools/help

[DesktopDave]

Looks like a nice ride there, welcome!

I'd do the chassis first, then focus on the motor. I'd suggest the updated cam chain tensioner and a cooling system overhaul as a prerequisite for any build.

As for power, I'd doubt much over 200hp is possible without forced induction. Warsteiner and a few others have done superb NA builds, they have a lot of great tips to build a robust motor. Also check out Metric Mechanic's Rally motor.

[dVeLoPe]

Thats a good choice what would you recommend start from the back forward?

I have only touched the GUIBO as it failed on me leaving me stranded but and redid the brake pads but it's all stock.

Should I do coilovers or a spring/shock setup? what chassis reinforments can I purchase? which websites??

[DesktopDave]

If you can afford downtime, I'd rebuild the front & rear suspension. I'd recommend stock-quality parts like Meyle or Lemfoerder. No need to go crazy with expensive performance parts like coil-overs unless you'll be tracking the car. In that case, I'd look around for a decent used set, update the springs to a rate & height you prefer, fresh Bilsteins or Konis, and finish it off with front camber plates.

The E36 is an incredibly sweet handling car with fresh rubber all around. If you just wanted to knock out the worst offenders, replace the upper rear shock bushings and the front control arm bushings. Then test the tie rods, that sort of stuff.

[Nick_318is]

Search for the Jakeb turbo kit on r3v, might be a decent solution for getting more power. Not sure if he's ever done one for an e36 though. Think the best way to reach him is via email- jake@classicdaily.net