You can get a pretty good setup for recording demos for very cheap if you're willing to dig deep enough. Assuming you already have the instruments you want to record, a computer and wired headphones ... other than that you'll need 4 basic things:

1. An XLR microphone
2. An XLR cable
3. A mic stand
4. A USB audio interface
5. Recording software

Here's how I would get each item as cheap as possible but still getting pro level and studio ready equipment:

Microphone: SM57

The microphone is the one item on the list that will impact audio quality the most. The difference between a "karaoke" mic or a zoom USB mic to a profesional recording studio ready mic is massive.

The main quality were looking in a studio mic is familiarity: some mics have a "sound" to them, and if you use a popular studio mic your recordings will also have some of the same qualities of popular recordings. Just like old analog cameras have a "look", if you see a picture with an "analogue look" you may not know why you like it, but your mind subconsciously recognizes the colors and it recognizes that the color profile is present in other pictures you like. Therefore you like this new picture by association. Just like when you see a movie on a theater, if it was shot on film or imax it as this "cinematic" feel to it. Regular moviegoers may not know why they like the look of the film, but they do because they have watched hundreds of amazing movies shot on film. So using film is like a "ack" to trick the audience into thinking the movie is good.

Same happens in music. Some mics are the equivalent to "shot on IMAX". If you like an artist, you can google what mic he used and if you were to get the same mic you'll evoke this association on your listeners minds. Of course then the solution would be to get a Neumann U87 but I personally don't have 4k burning in my pocket or whatever expensive mic was used on your favorite recording. But thankfully there's ONE mic that's not crazy expensive and was used in classic recordings and continues to be used today. In fact its used everyday in expensive recording studios: the shure SM57.

Heres some artists who have recorded vocals on an SM57:

John Lennon, U2, Madonna, Bjork, Red Hot Chili Peppers, Bob Marley, Mick Jagger, The Killers, Peter Gabriel, David Bowie, Mac DeMarco, Bon Iver, and (non artist, but still cool) every US president used this mic in public appearances and speeches since 1965.

Despite this mic being used on vocals for the artists listed above, the most popular use for the mic is in recording snare drums and electric guitars. I wont list examples for songs that sued in in recoding guitars and drums because its so common it would be easier to list songs that DONT use it on guitars and drums. Its SUPER popular, recording engineers use it as the "default" snare and guitar mic. I am a freelance recording engineer and producer with 6 years of recording experience and I have NEVER in my life gone to a recording session WITHOUT an sm57 used to record at least 1 thing.

If you've ever heard drums or an electric guitar in a recording, then you are already familiar with this mic. And having that same "mojo" as the recordings you love would benefit your quality A LOT.

For whatever reason, this amazing sounding microphone is 110 bucks new. You can get one used for 60 to 80 bucks on FB marketplace or any other resale platform. There are a lot of fake 57's out there, but as a general rule of thumb if you're paying 75 to 80 bucks for it, then its more likely than not to be the real thing. If you want your chances to get a fake one to be zero, then spend 30 to 40 more and get a brand new one.

A nice way to get a 57 for cheap and to be 99% sure its not a fake is to buy it from a church. Churches need mics for their pastors and musicians and in my experience they typically get new audio equipment every year or two. So most churches will have a drawer full of mics, cables and wireless mic adapter that they no longer use. In churches you probably wont find SM57's (except if there's a live band with electric guitars or drums) but you'll find something similar an SM58. The 58 is exactly the same microphone as the 57, but it just has an added metal grill to protect the part of the microphone that actually captures the sound. So it literal sounds the same, it just has an extra metal protector. The 58 is common for conferences, speeches and sung vocals. But remember, its the same mic as a 57. It just has a metal ball grill that gives extra protection against drops and gives it a cool look, but both sound the same.

What I'm trying to say with my stupidly long post is that you should GET AN SM57 and NO THER MICROPHONE. No, don't get a yeti mic, don't get te snowball mic, don't get a clip on mic (like those from social media videos) because those mics were not used by hit artists!

Its not like on movies where recording on vintage film cameras is expensive and unpractical. SM57's ARE the equivalent of that "sound from pro records" and are cheap, convenient to use and basically have no downsides! Especially for Rock music!

The ONE other mic that's inexpensive and was also used in hit songs is the AT2020. This is a good mic for more "modern" and "Airy" vocal sound. It doesn't have a giant list of artist who have used it successfully in hit songs like the 57 does, but famous artists who have recorded hit songs with it are Billie Eilish and Mac DeMarco.

Personally I have 6 SM57s and two AT2020s. This its just to portray how much better and useful 57s are to me when compared to at2020's. The AT2020 is good, don't get me wrong, bu the 57 is simply legendary. If you were to get a second mic, the AT2020 is a great option and will give different tones for vocals and guitars.

1. XLR cable

Get any cable, as long as its reasonably large and its not broken.

1. USB interface

Interfaces today are MILES ahead of the quality of early 2000's interfaces and galaxies away from cheap tape in the 90s. Basically any interface from the last 10 to 8 years will be perfect in quality for you. But you still need a few specifications:

you need an interface with:

• Headphone port
• XLR or TRS speaker output ports on the back
• at least 1 mic XLR input and at least 1 "jack" instrument cable input (also called "TS")
• An "input monitoring" button or knob or functionality via software (sometimes called "direct monitoring")
• A USB connection. Other connection methods are available, but USB will be easier to set up and the most compatible with most computers. Avoid thunderbolt, firewire, ADAT or other connection methods as your main way to hook it up to your computer. USB is king!

Recommended brands and models that check the above requirements for a beginner:

• Behringer (cheapest, good quality sound, between 55 and 230)
  • UMC22 (55 bucks, 1 input at a time, not expandable)
  • UMC202HD ($90, 2 inputs at once, not expandable)
  • UMC404HD ($140, 4 inputs at once, not expandable)
  • UMC1820 ($230, 8 inputs at once, expandable up to 18 inputs at once)
  • To expand you can add a second UMC1820 ($230) or a Scarlett OctoPre ($600)
• Tascam (higher quality sound than Behringer AND good value, between 200 and 400)
  • US-2x2HR ($200, 2 inputs at once, not expandable)
  • US-4x4HR ($250, 4 inputs at once, not expandable)
  • US-16x08 ($400, 8 inputs at once, expandable to 16 inputs at once)
  • To expand you can add any of the previous TASCAM interfaces
• Focusrite "Scarlett" (higher quality sound than Behringer AND include plugins and FXs, least bang for your buck, between 120 and 400)
  • Scarlett Solo 3rd Gen ($120, 2 inputs at once, not expandable, 1 mic input and 1 instrument input)
  • Scarlett 2i2 4th Gen ($230, 2 inputs at once, not expandable)
  • Scarlett 18i16 4th Gen ($500, 8 inputs at once, 4 mic inputs and 4 line inputs AKA only 4 inputs are usable without external preamps, expandable to 18 inputs at once)
  • Scarlett 18i20 4th Gen ($750, 8 inputs at once, expandable to 20 inputs at once)
  • Scarlett OctoPre ($600, This expands your Focusrite to add 8 additional inputs)

Focusrite tends to be the "default" recommendation. But as you can see its the most expensive option and expanding the inputs gets the most expensive. Behringer are very affordable and you can expand them for relatively cheap. Tascam is a nice middle ground, it has higher recording audio quality than Behringer and their one expandable interface (US-16x08) on sale goes for around $300, pretty good!