300e?

Ok, I am in a position to buy a 1988 300e with high mileage. The odometer is stuck at ~166,000 but the owner says it's probably around 200,000. I had it checked out today and compression is still good, but there are some minor repairs needed. The only thing I'm really worried about is that there is a little oil accumulating at the front of the engine block. With the m103's history of blown head gaskets, I'm a little scared. So now I'll get to my question...

Does anybody think this is a good/bad idea?
I'd appreciate any feedback.

oh, by the way, the price is $4000, and that's after negotiation so it can't be lowered any more. I have a deal worked out with my parents: split the price 50/50 so I'd just have to spend 2k, although I would have to pay for any repairs. Oh, and I'm 18 if that plays any role.

Thanks
Peter