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It would be one hell of a sleeper. Provided you can get traction, it would chomp a lot of cars.
Whatever you do, make sure the rear end is beefed up and well sorted. Short wheelbase cars are quite dicey. N54/55 is already too much for the stock rear end.
I did (and still do) contemplate an N62 swap into my E87. If the engines were not so troublesome, cheaper to buy and readily available it would be quite fun too.
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