You don't have to find a used one, a new, small one 7x10, or 7x14, is readilly affordable, Check with Cummins, LittleMachineShop.com, yahoo groups. Ebay often has them, used, with lots of goodies, for $300. It's all the tooling that costs you.
If you set it up on a hunk of scrap steel plate, well-leveled, and well bolted-down, to a solid bench, such small lathes can do amazing things for you. I've used shelf brackets to screw the tops and bottoms of desks, tables, chests of drawers, etc, to the ball and floor, blocking, pipe, and screw jacks to put the wt of the CEILING on theme, etc, making them very stable indeed.
The mini-mills can do the same, with carbide tooling for work on steel, if you use a couple of pcs of angle iron, bolted in an upside down "v" format to the head, to stabilize the mill, reducing chatter and flex. Of course, you then have to remove those braces if you want to tip the head for an angle cut, but it's best to angle the work, anyway (with angle plates, sine bar, swivel vise, etc). Mills can do a lot more for you than the lathe, but you often need the lathe, too. I've needed the lathe to make mounting bolts, washers, etc for the mill, in fact. You are always needing set up stuff for the mill (if you do random, "one-off" type work, as vs mass production) that you aint got, and it takes too long, too much money, to go get it, send for it, etc. So you make it on site, and get busy doing what you want-need to do, as vs waiting on stuff.