I have that lathe and have had no problems with it. That's an excellent price if it's in good shape. I bought mine off craigslist 4 years ago and paid $225 but it had a bunch of extras with it; pen kits, pen press, bed extension, set of Record turning tools and some other stuff.
Only problem I've had with it was needing to replace headstock bearings and that was very easy to do and not very expensive. Also had to replace the drive belt awhile back.
If you plan to turn pens or small bowls it will do fine as it's only a 10"-1/2hp machine.
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