Some good advice being given here. The biggest curse I have had was working out of a small space. For building cues especially, but cue repair also. The mess is not good for the living area of a house, and a detatched area would be even better due to the hazzards involved. Even with that asside, If you are in a good area, and do good repair work, you will quickly outgrow the space, and have a big delima on your hands. When you get into building cues, you will definatly be deadlocked for space quickly. It is feasable to do tips and shaft work from a small space, but as mentioned can be a big mess to keep organized & you really don't want It in your living space. The size shop I want now would probably be bigger or the size of a smaller house By It'self.
A higher level hightower type lathe can be setup in a small space though, and does quite a bit of various repairs, so would be your best option. Good Luck,
Greg C