Unless you have alot of mill work planned, you'd be better off putting that $7-10k in a lathe, tooling and metrology. Reamers and headspace gauges have a way of eating up funds pretty quickly. Plus with a mill the tooling costs add up really fast.
It would be pert near impossible to get a decent 13X40 lathe, mill and tool them up for $7-10k, and if you take shortcuts on the tools, you'll be fighting them to do good work. And whatever you do, don't get a combo lathe/mill, they it's a jack of all trades master of none that you'll spend more time converting back and forth vs. making chips.
