I like my 12x36, it's Taiwan built and came with all the basics used for less than a grand. It fits in a 60" space just barely but to me it's about the smallest I'd want for my interests which also include classic cars.
There's also a Craftsman "industrial" machine near you but it's missing the cross slide and compound.
Great old metal lathe, probably best for wood working now because it's missing the metal working tool post. Runs on 110/120 Volts. Plug it in and have some fun! Comes with it's stand. Call or text...
sandiego.craigslist.org
Might be worth taking a look if you're willing to hunt down the parts and you can get it for half what he's asking.
If you only have space for one I'd suggest getting the best lathe you can, you can do a lot of mill type work on a lathe but not so much the other way around unless it's a CNC.
As for mills I really like having a knee and think it's worthwhile stretching your space to make one fit. sometimes you can rearrange things to push one into a corner to take up less room.
I had my multi-function machine when I was just starting out but remember being frustrated trying to run it as both a lathe and mill, just wasn't good for either with my limited experience at the time. Perhaps if I knew more I could have made it work but I paid about $600 for it new and was happy to sell it for half that much within a year. I ended up getting a Seneca Falls Star lathe for $300 and it served me well even though it didn't have a QCGB. One work around with a change gear lathe is to set it up with a 3 phase motor so you have variable speed, doesn't help with setting up for threading but does the trick for adjusting speeds.
I'm sure you can get what you need close to home if you want a used machine, or even a newer one if that's your preference.
Selling two Precision Matthews 1127 - VF - LB lathes - WITH STANDS and extras. The stands alone are worth $500 new! This is a large bore, 1.5 inch lathe that runs on 110/120 Volts. Just plug it in...
sandiego.craigslist.org
Just take your time and feel free to post up any other questions you have.
John