If that is all I could spend and wanted a versatile shop, I would look for a good used AC/DC 220Volt stick rod machine that can be found for not more than $400 complete with fairly long welding leads of 50 or more feet. I picked up my Miller AC/DC CC/CV 350 amp machine with 150 feet of lead for $350. This would leave you enough to buy a good Victor oxy/acetylene torch for around $350. Rent your bottles for the time being rather than buy which would cost you another 300-400. So now you have spent 800-900 which leaves you plenty of money to pick up 2 or 3 Harbor freight 4.5" grinders ($20 each) and abrasive blades (10 pack assorted for $6 on sale) /wire brushes, hand wire brush, chipping hammer, AD hood ($49) and then a visit to your local welding supply for an assortment of welding rods for the stick machine, maybe some brazing rods for the oxy torch and still have some money in your pocket to pick up a used Phoenix 50 pound rod storage oven.
Shop is then ready to fab whatever you want. Later as more money is available, spring for your own bottles, maybe a MIG welder (220 volt rather than the underpowered 110v) or even a plasma torch. Since these last items would run you about what you have budget $1500 each, these would be a good to have but not necessary for the time being. Cheaper units are available for each of those, but many folks end up trying to sell the cheap stuff and buying more powerful units later so why waste your money. Wait till you can afford the best unit. Remember when buying a MIG/FCAW, you're going to need a bottle of mixed gas to run it if you want good quality welds. FCAW can be ran without gas shielding, but better results are obtained with a shielding gas. I have found that I can do anything I need with my stick machine and if I were to add to my shop it would be a TIG gun with high Frequency box so I could also weld aluminum. Leave the wire feeder to folks needing high productivity which is what they were originally developed for but have developed favor with home users because when properly set they produce good looking welds with very little practice. Good looking doesnt always equate to strong however as MIG welds are notorious for cold lap and non fusion which looks good but might not hold as well as one would think.