On your budget yes a old name brand AC arc welder is the right idea. If you can on your budget get a AC/DC machine. 7014 is by far my favorite rod. I keep it around in three sizes for varing sizes of work. One of the welding courses I took at Iowa State they started us out on the fast freeze rods (6010 and 6011) Took a really steady hand to make a decent bead with those. Once I had my samples done with those two the rest were a cake walk. I think we used 8 different rods. Still prefer my 7014 hands down though.
I ran a Buzz box from the mid 80's that dad bought new but when I was getting ready to build a loading dock for the local Threshing show I finally got ahold of a Lincoln tombstone Idealarc 250 like the ones they had a college and one in Highschool. Those are a pretty much industricable machine and they make a steady arc. They will have to remove that one from my cold dead fingers.
I know you have 220 in your shop just make sure you have the amperage you need. I think you should have at least a 60 amp service.
The ideas of starting on gas aren't all bad but that is just plain out of your budget right now. to start from scratch you will drop about $500 for tanks and the torch set (most of that will be tanks). Mig would be nice but they take a little more work to get used to. Start with the stick and work up.
Also be careful working in that wood framed building. It can be done but I wouldn't weld right up till you leave the shop. Work on your welding and start messing with something else for a hour before you leave the shop just in case. Fires can smolder a long time before you see smoke.
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Today's Featured Article - Restoration Story: 1964 JD 2010 Dsl - Part 2 - by Jim Nielsen. Despite having to disassemble the majority of my John Deere 2010's diesel engine, I was still hopeful I could leave the engine-complete with crankshaft and camshaft-in the tractor. This would make the whole engine rebuild job much easier-and much less expensive! I soon found however, that the #4 conrod bearing had disintegrated, taking with it chunks of the crankshaft journal. As a resul
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