You don’t need a big room or a big budget to make records that compete. Here’s a studio for less than $500, and as little as $240.
Computer — $0. Use what you have. 8GB of RAM and some free storage will do.
DAW — $0–60. Audacity and Cakewalk are free. Reaper’s discounted license is $60 and does everything.
Audio interface — $50–120. A Behringer UM2 gets you started, and a Focusrite Scarlett Solo is the classic step up.
Microphone — $50–100. The Behringer C-1 is a solid starter condenser. The Audio-Technica ATR2100x does USB and XLR.
Headphones — $50. Audio-Technica ATH-M20x or Samson SR850.
MIDI keyboard — $40–100. midiplus AKM320 on a budget, AKAI MPK Mini if you can.
Pop filter and stand — $30. Acoustic treatment — $20–50. Foam panels help, and so do heavy blankets and rugs.
That’s the whole rig. All that’s left is the music.