[WNC Goater]

I have a 1.5 horse KMG with no complaints. Unless you plan to make some really heavy blades and intend to really hog out some metal fast the 1.5 KMG should serve you well.

Try to find a means of hooking up a fan to blow out a door if you have a door in your basement to move the contaminated air out. Additionally a jury rigged fan with hvac filters to filter the air will remove a lot of dust. And get a decent respirator (not paper dust masks) . Use all three if it is an option.
It blows my mind the amount of airborn dust collected on my overhead filters. Also blows my mind the amout that still collects on my respirator filters. The heavy stuff goes into the spark bucket but there is a tremendous amout of airborne steel dust, just like wood dust in woodworking. It will get in your lungs unless you remove it and block it. That respirator is your best line of defense, the other two just somewhat reduces what gets to the respirator.