I think in the long run you'll be happier with individual machines rather than a combo machine. As for cost, if you're willing to spend $5,000.00 you should be able to find both a good used lathe and milling machine for that price or less. I have both a Bridgeport Series I milling machine and a Sheldon 13 x 56 lathe. The pair cost less than what you are considering spending on a combo machine.
For a mill I would consider a used Burke Millrite:
http://www.doranaerospace.com/millrite.html
This machine is about 2/3 the size of a 9" x 42" Bridgeport Series I machine
Or a small Bridgeport Series I. Here's a listing for one on eBay. Don't get too hung up on the price. They are available for far less money than this seller is asking. A local equipment dealer in our area sold over a dozen of them last year for $1,500.00 each.
https://www.ebay.com/itm/Bridgeport...h=item3645b3c1d0:g:BRMAAOSw7U5ZARY3:rk:1:pf:0
For a lathe I would look into something like a 10 to 12" Logan. Here's a link to some information on Logan's:
http://www.lathes.co.uk/logan/index.html
When I purchased my Sheldon a couple years ago the seller also had a completely rebuilt (including regrinding the ways) Logan similar to this for $2,200.00
https://www.ebay.com/itm/12-x-35-Logan-Metal-Lathe-/312444543227?oid=312388841808
Both machines would easily fit into the space you are considering, however I would insulate and heat the space before moving in the machines. I started with my lathe and two mills in a 3 car garage. It was fine during the summer months, but all but unusable during the winter. As I'm typing this it's currently -16*F. The spring time also had it's share of problems. On warm days moisture would condense on the cold iron. The machines had to be wiped down several times daily to keep them from rusting.
The machines only lasted in the garage about 2 years. I moved all the wood working equipment to one side of the basement and brought in the metal working machines. Over the years the shop has expanded considerably. There are now nearly 2 dozen pieces of metal working machinery in the shop. All of it is old American Iron, and all are in excellent condition.
There are good used machines to be found. The best places to look are local shops, universities, technical schools, high schools and government auctions. Several of my machines came from schools and local businesses.