There is a big difference in quality between a harbor freight machine and other machines. We have a harbor freight multi-machine, and it has many uses, but the precision and accuracy does not compare to similar quality machines such as a Smithy. It is hard to make the same part twice, and very difficult to get a good surface finish.
As tknopp said, the cost of tooling can kill you if you are trying to stay cheap. A good tool with cut faster and cleaner, and is easier on the machine. You will likely go through a lot of tooling at first, as you are learning cutting depths, spindle speeds, and feed rates.
If your purpose is to just play around and occasionally make a small, non-critical part, I think you will be quite pleased with it. I think the smart money is getting the biggest lathe you can afford or fit. A good friend of mine has an old belt driven lathe in the garage of his apartment, its about a 10x30, but it is American made, rock solid and consistent, and he can replicate dimensions over and over again.
Regardless of what you do, useful equipment will hold its value, so if you get a good deal, you will generally be able to get your money back.
