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I'm an e36 enthusiast first, with other BMW chassis falling in line behind.
If you want to keep the car (because you like it, has sentimental value, whatever) and want to pour in the cash, then do it. You will never ever recoup $20k dumped into an e36.
If you're looking at it as in investment, you're better off buying another low mileage car and bringing it up to par. Part this one out, swapping in the mods if you want into the new chassis, and/or sell the whole thing as a track car fixer upper. I'd guess it's 90% cosmetic damage to the front clip which can be a cheap fix if you're not concerned with a showroom condition fix (i.e. use junkyard panels with a cheap respray).
FWIW, the premium on e36 m3 pricing seems to apply only to stock, unmolested, unmodded cars. With accident history on your car plus a repaint, your car does not fall in this category.
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