@xyppam
its simple actually. if u get a decent one it'll be way better than a city/corolla. i have a 1997 e36 running perfect no prbs whatso ever. the catch in buying an e36 is that you get the best possible one. cause usually nothing goes wrong, but if u get a tired old one than be ready to visit the mechanics regularly.
i always say if u get a crap mehran ull get it fixed in under 5k even in one day, but if u get a messed up bimmer than no mechanic can help you even after spending loads.
about the heating prb its no big deal if u check the water level regularly, cause this has no separate reservoir to add more water when the level is down in the cooling system.
one thing you should look out for is the suspension. chances are it wont be perfect.
the parts are no issue. i can give you the info about the suppliers, but be ready to pay a bit more than ur local car parts.
mail me if you need any help.