Fix it. She's a good lookin car. E36 M3s are around 8k for a pristine, sometimes tastefully modded, low mileage example. 5-6k gets you a high mileage, but rust free and maintained example. Anything less has a salvage title or has been beat to hell/not properly cared for.
Keep in mind these cars are entering their second decade in age. You can get an E46 M3 for around 10k now, though it wouldn't be pristine by any measure. If the rest of the car is in good shape, and has desirable options (as it seems to have), I'd fix it. Dakar is hard to find the way it is, much less with factory LTWs
RIP Ben "Jever" Doebele, we wont forget you
Please, call me Chadley
1997 328iS... HR coilovers, Brembo F40 calipers, camber plates, it needs a CUMMINS!!
1990-somethin Chevy K3500... Cummins, cab swap, 5 speed, and lots of motor work. 20 MPG, 40 PSI, 507 ft/lbs torque