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If you're looking for performance and having fun (driving) in the car you won't beat a stage 2 MHD tune. For $1600 you could easily do MHD + new LPFP and be just below 450whp on E50 fuel, and if you're okay with at least DIYing the LPFP install you could probably afford a FMIC too and then run stage 2+ and exceed your HP goal.
That said, if you aren't trying to outrun every other car on the road and find more enjoyment from a custom, modded looking car then $1600 could probably be enough to have the guys at your local car meets wetting their panties. Personally I like my 335i (in space gray like yours, too) looking mostly stock so when I smoke other cars they have no idea what hit them but YMMV.
All of that is assuming you're up to date on your maintenance though, because $1600 could easily be 1/4th of what needs to be done to these cars at high miles or old age. I would skip the colder plugs if you aren't running ethanol/meth or really high boost - which I'm assuming you aren't - but a new set of factory Bosch 3-point plugs and new coils are always nice to have and will keep your n54 happy.
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