Keep looking, you should be able to find a newer W201, even a 2.6L in the same or better condition for that price point.

From that period, the W201 has known issues with valve seals hardening and cracking, the climate control system is also a high service item, radiators have plastic necks that tend to crack. The timing chain and it's tensioner and the serpentine belt tensioner should be checked. At this age, the rubber parts in the suspension and drivetrain are probably in need of service/replacement.