You can use an overcast stitch to finish an edge similar, but it will not cut off the selvage.
Someone posted a neat machine that was a sewing machine on one side and a serger on the other here, about a month or two ago. I've never seen that before!
I'm not sure what your budget is, but you could watch Craigslist or mine is from a sale at Hancocks, its a Janome and was $199. It works really well, I use it in construction of children's clothes, cloth diapers, towels, etc.