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Love your passion for the BMWs. I'm also afflicted.
The 2001 540-6 goes in the $6-12k on cars.com, so you have some room to play if you want to take a chance. I've had two of these E39 beasts and I highly recommend them if you can turn a wrench or know a great mechanic. Both issues (water pump and timing chain) mentioned are certainly possibilities. Hope turns out to be doable and you get the car at that low price.
I also had an 1988 528 back in the day. What a fun car that was!
Good luck.
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