e36 or e46?
The factory e36 location is the lower dash. I recently installed an LED and didn't want to use the the factory location. This is my temp solution until I can find something better to mount the LED in.
I thought about using the mirror, but decided against it because the LED I purchased is super bright and would prject a dot on the dash and you could see the wire leaving the mirror. I hate wires. Even with my audio setup, you can't see any wires except in a few small spots where there was nothing to hide them behind. Anyway, I digress. To wire an LED to the alarm, this is what I reccomend:
Buy a varad blinking LED. It comes with three wires. A constant 12v, switched 12v, and ground. It can also be setup to flash when the alarm is activated by using only two of the wires (constant 12V and the accessory to your alarm for the ground).
To begin, you would need to remove the glovebox. If you haven't done it, its not as frightening as it sounds. I recently wrote a DIY with pics if you need to consult that. With the glove box off, you will want to tap the red/white wire coming out of the glovebox on the left. Thats your constant 12v. If you want it to blink only when armed, wire the ground to the accessory. Can't tell you which wire that is, only where the module is. If you want it to blink when the car is off, wire the switched 12v to the purple wire in the center of the glove box. the last wire is spliced into either of the brown wires on the glovebox.
Now, cut the LED wires after the box (this will make sense when you see it) and have extra wire to attach the two ends later on. To moung the LED in the mirror, take it out of the car (rotate 45* to the left) and drill your hole where you want the LED.drill another small hole in the top to run your wires out of. Connect the extra wire and being running the wire to glove box. You can stuff it above the carpet by the windsheild so it will be out of sight. When you come to the pillar trim, peal back the weather stripping and stuff the wire behind the trim. you can take the trim off too, but thats more work.
When you get down to the glove box there is a small gap between the upper and lower dash. Slide the wires though there and connect them to other end you cut. Put the glove box back on. Enjoy!
ps: if this an e46, I can't say it will be the exact same.