Go pick up a nice E36 M3. I had one a few years back and it was a fantastic car. Decent MPG, good performance, good handling, and great looks. I stole the rims off my Dad's 335i and I think it updated the dated look a bit.
Only issues I had was that it needed a new evap canister, and new timing tensionsers. I drove it from 78k to ~120k.
There are plenty around, some in better shape than others, but for the money you'd have a hard time finding something more entertaining to drive in my opinion.
Mine was a 4 door-5 speed, so it had a lot of practicality, but still all of the fun.