Former E3 owner here.
M30's of that era are known for cracked cylinder heads. A head from the 80's is the best solution, and there is a Spanish aftermarket solution that might be cheaper, and doesn't flow as well. All M30's have a thin steel tube valvetrain oiling rail that is held to the head by two hollow bolts. The bolts frequently get loose and oil flows out around the resulting gap, and not on the rockers like it's supposed to, resulting in oil related failures. Pull the valve cover and check for that, and make sure any valvetrain noise is just out of adjustment lifters. You can buy replacement bolts with thread locker pre-applied, and some people drill the bolts for safety wire.
On my E3, the engine was tight in the engine bay, especially at the front and rear. I bet E12's are the same.
The fuel injection is primitive. Complete E28 top end swaps are possible, but do the research first. On the stock FI, you can bolt-on swap the longer intake runners from a 320i to get more mid-range at the expense of a little top end. That works well with the 5 speed swap.
All E12 manual trans cars are 4 speeds, except the last year, '81. Ratios are widely spaced, and I always felt 1st gear was too low but all BMW's from that era are like that, so you're stuck with it. E28 5 speeds will swap. Avoid the 5 speed from an '85, they're weaker. Or you can swap in taller rear gears. Or you can live with as is. The E30 is perfectly happy to rev at 4K or more for as long as you'd like.
E12's have horsehair seat padding, which deteriorates and will probably need to be replaced by now.
As noted above, with a fresh suspension, they drive very nicely. Diligent and lengthy searching may yield stiffer springs and bigger bars. Bilstiens an Koni's should still be available.
They rust a lot. The A/C is marginal.
More parts are available than you'd think. Some seem to go NLA and then become available again, so check periodically. Parts are expensive.
Visit firstfives.org and see if anyone still posts there.