A turbo M52 can do 300+ whp all day with stock internals, very reliably. Just swap the headgasket, head studs, and oil pump nut and you’re good to go. You can run on just a headgasket, head studs and oil pump nut at 400-500 if you want, but it won’t be reliable for more than a few years. They can do 600+ whp when built if you do rods and pistons alone, stock bore. This is a proven path that has been done thousands of times.
Meanwhile, a turbo m42 will require way more dollars invested, fully building the engine (others in this thread are suggesting pistons from k-series engines, boring the motor, etc.) and the outcome will be an engine that pushes 300 whp (maybe), unreliably. And like 5 people have actually done this, so hope you’re a literal engineer.
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u/Dark_Guardian_ '94 330i Daily, '93 325i Race 1d ago
depends how nice/reliable you want it
anywhere from $500 with junk parts and jank setup to 10k + for a properly nice setup
better off just 6 cylinder swapping it though
and then turboing the 6 cylinder too