1. RLL give you the best bang for your bucks as they are the cheapest way to legally shoot full auto via a M16/AR15 platform. A SP1 or non-colt RR is your next cheapest, then your Colt M16 A1s, then your A2s, and finally RDIAS. Each options has different advantages and disadvantages that I wont get into here. Personally I went with a Non-colt as I was on a tight budget. A Colt M16 A1 or A1 would have been awesome but I was already stretching for the Non-colt. RLL require a modified mil-spec burst trigger to be able to fire safe/semi/auto and I really wanted a Geissele SSF trigger so that was a dealer breaker for me. Also RLL have paddles, potential timing issues, require an SP1 BCG and as a new MG owner I just wanted the plug and play of a RR.
2. Colt is the gold standard. After that they are pretty much all the same. Some say Oly is best, others say Senda, SAW, its all personal preference IMO . I went with an Oly, their A1 style lowers look very similar to a Colt and I liked that it was Marked "M16" as the model and "Safe/Semi/Auto" and it had a full fence and push pins (Colt SP1s just dont look like an M16 to me)
3. Forged lowers are stronger than cast. E.A and Bushmaster are the two that pop into my head as casts lowers. They are easy to spot as they will often have raised letters instead of engraved or stamped. In all reality they are probably fine but out of all of the M16 options forged RR tend to be the red headed step child that no one really wants unless its a crazy good deal.
4. Ive bought all mine from frank at Midwest tactical.
http://www.atfmachinegun.com
Ruben also has a solid reputation
http://dealernfa.com
I would stick with a dealer for your first few purchases as there are scammers out there and I wouldn't risk getting ripped off $20k just to save a $1,000. Pay the premium for the peace of mind.
Websites to watch for good deals on machine guns:
http://www.sturmgewehr.com
https://www.rockislandauction.com/
http://www.autoweapons.com
http://www.impactguns.com
http://www.subguns.com
http://www.capitolarmory.com/class-3-nfa/machine-guns.html
http://www.onlythebestfirearms.com
http://www.davidspiwak.com
http://www.gunbroker.com
http://www.nfasales.com
https://www.machineguncentral.com
https://www.machineguncentral.com/default.aspx
http://mtmmfg.com
http://www.classiiidealers.com/
http://www.westernfirearms.com/
http://www.collectorsfirearms.com/class-iii-full-auto/
http://www.urban-armory.com/
http://www.ar15.com/forums/f_7/118_NFA_Firearms_andamp__Parts.html
Website that tracks machine gun values:
http://www.machinegunpriceguide.com/
5. There was a point in time when it was recommended to not run 9mm in a RR due to wear and tear of the blow back action. I think a lot of the issues that caused the wear on the lower have been revised and it seems to be acceptable as of lately. Im not at expert on this issues as I use a M11/9 as my dedicated subgun.
6. Makes sure the lower is in spec and that uppers fit properly, this is a common issue for non-colts. Make sure you try your upper on it, not just the one that comes with it as some people modify uppers to fit. If you have fitment or spec issues most can be resolved. USAnodizing does gun smithing and will reanodize a RR. I paid $500 to have the upper shelf and rear radius milled down to spec on my oly lower, fits great and looks like a brand new M16.
7. Dealers use different strategies. Some sell low and do high volume of sales while others jack up the prices, only sell a few but when they do they make a better return. And others dont own the firearms, they just connect the seller with buyer so prices are not under their control. Prices are in a bit of a slump so its a decent time to buy.
M16 Market Data
Transferable M16 machine guns and estimated market values:
RLL $15-17k
RDIAS $30-35k
RR Non-Colt Cast AR15 Conversion $17-19k
RR Non-Colt AR15 Conversion $18-20k
RR Colt AR15 SP1 Conversion $18-20k
RR Colt AR15 614 $22-25k
RR Colt M16 $21-25k
RR Colt M16A1 $23-27k
RR Colt M16A2 $27-32k
RR Colt M16A2 Commando $30-35k (Marked "Auto" instead of "Burst")
8. Dont spend more money than you are willing to loose. MGs have gone up in value since 1986 but there is no guarantee it will last. All it takes is one nut job to ruin the fun for everyone. If the Vegas shooter had used a RR instead of a bump stock we probably wouldnt be having this conversation right now. I used disposable income to buy my MGs, if they go up thats wonderful! If they get banned and I loose all that value, oh well, it was a fun ride while it lasted, and at least I cant tell people I owned a MGs. And regardless of the price I will likely never sell them and am plan to pass them on to my son when I'm old and grey.
Best of luck on your purchase and be sure to post lots of pictures when you get it.