www.craigslist.org might be of some help.
In that price range you won't get anything to write home about. And it'll probably need constant attention to get everything working properly and feeling right (suspension, steering, climate control, seats, door locks, etc.).
For the same amount of money I'd go for a turbodiesel that needs a bunch of work over a non-turbo in better condition (since rust is not an issue in the Bay Area) and fix things as time and budget allow. But that's just me.
I hope you plan to do your own work because there's no way you'll stick to a budget if you take a $1500 MB to a shop for every little thing.
Sixto
95 S420
91 300SE
87 300SDL
83 300SD