[swartzentruber]

With a child, you'll probably be happier with a sedan, though unfortunately, the E46 M3 never came in a sedan. You might want to consider a lower mileage 330i (sedan) with the ZHP package. This was a bunch of performance upgrades given to the standard sedans, supposedly BMWs answer to the fact that they had no M3 sedan (though later I think it was available in coupes as well). Here's a nice low mileage example that may not be that far from you, and is right in your price range.
http://www.autotrader.com/cars-for-s...gIndex=2&Log=0