Lohring is absolutely right. If you're going to make parts for watched or something smaller the lathe in your post will probably work fine, but a 1/4 inch drill in steel would probably stall it.

You'll be much better off to wait till you have a little more money saved up and buy a real lathe. That Monarch 10EE that Lohring has is a really nice machine.

I have been in the machining industry for about 53 years so I think I have a pretty good idea what I'm talking about.

I don't own a lathe right now, but I do have a CNC milling machine in my garage.

You can only work to the limit of whatever milling machine or lathe you purchase will allow. NO ONE, nut even a very skilled tool maker, can compensate for a low quality machine. Typical things to look for are, hardened & ground "V" type ways, steel gears in the headstock, accurate vernier dials on the carriage, compound & tail stock, a cam lock type spindle nose, hard steel chuck, a spindle that can except 5-C collets, etc., etc.

Jim Allen