Things to look at before buying old BMW

ok, i'm looking at buying a 1987 325is. I'm actually goin to check it out this weekend. Its a 5 speed...I think the 325is says the rest. I would like to know what I should look for when I see it...were there any major problems with this make and year? It has about 200,000 miles on it, but the engine was rebuilt 10,000 miles ago. Could the engine rebuild pose problems? With so many miles on it, do you think the $2500 is worth it (will probably be able to talk him down)? He seemed to be a fanatic with the car. Said he changed timing belt like he was supposed to, said he put in a new clutch, and other normal repair and maintance stuff. How would I check for body rust (besides visually seeing it)? Any tips would be appreciated!

I'd buy it...

Just take it to a mechanic and have him check the brakes/tranny/engine and compression test on the engine.