Thank you for your input everyone. I value it greatly. The car is priced very low so I am still interested and went to see the car today. It's not a long drive from where I live and I had nothing better to do.
Upon arriving, I was surprised that it had MPE exhaust tips, OEM short shifter with suede boot, "M Performance" suede on the dashboard, and black grill. So, the previous owner of this car is probably a forum member. No offense to anyone here... but that's probably a bad sign.
There was a CEL displaying during the test drive. I was very disappointed that they had me drive all the way over there to show me a used luxury foreign car with a CEL. This may sound unfortunate, but I consider that an awesome bargaining chip. Let's not forget the car is warrantied until 2017 and obviously was not lemoned, even after it's original owner's complaints.
I spoke with a more knowledgable service rep this time and was able to find out how they acquired the car. Long story short, the car was a buyback citing some problem where they replaced "injector and plugs." I have this detailed in a signed document dated 10/27/13. BMW then sold the car to this wholesale dealer I am working with.
I left a deposit and scheduled a PPI at a local BMW dealer, different than the one who they acquired the car from. I am looking forward to hear more details on why the original owner had the car replaced.
Assuming the PPI comes back with a clean bill of health, and a REALLY good story on how this car's situation came to be, I plan on making an offer on their already low price.
edited: more accurate details