You can't really go wrong with a variable speed Jet mini-lathe. I would spend the extra for the VS - as you will eventually want to try CA finishing and buffing - and the VS on the front really makes a difference.
For about $100 more, you can get the Jet 1236 - and it has a longer bed with a larger capability should you ever want to turn something larger - like a bowl.
If you have the space, I'm a big believer in purchasing dedicated pieces of equipment and adding work stations (eg. buy a table saw, a planer, a jointer, a good chop saw, and a lathe - all as you get a few extra $ here and there - certainly not all at once!) and you will be able to make just about anything you want out of wood. If you don't have the space, the Shopsmith is a good solution - but the dedicated Jet Mini is still something you should have beyond that. You should look for used equipment if you can. That's how I got my Delta Cabinet Saw - for less than 1/3 of new with lots of extra goodies on it. Even today, there is a Grizzly 5 hp table saw in our classifieds - almost brand new barely used - and I'll be the guy is selling it for about half what he paid for it. If I had the room, I would purchase it! But - I digress.
If you do purchase a mini-lathe, you'll still need a drill press and perhaps a belt sander or bench top belt sander to prepare the blanks.
Just my 2 cents. Good luck!
Best wishes,
Roger Garrett