All you really need is a computer, some production software, and some loops.

I use Acid Music Studio. You can pick up a copy for around $40 new. Ive tried other software in the same price range, and the free programs ive found, but Acid MS is the best ive found for under $100. If you want to try free software, there are a few decent ones.

Ive bought about $300 worth of loops.

And I have my computer.

Those are the basics. What you absolutly must have. You production software, loops, and your computer.
After that its just about learning to arrange loops and make good music with them.

It starts getting tricky when you want to record things. I have a $10 mic I use to record. I use a $30 karaoke machine and my entertainment system as an amp. I have a $20 radioshack Mic, and a couple of electric instruments I bought used, I can plug in.

The overall theme here is I found ways to get around needing thousands of dollars of equipment.

There are some tricks you can use to clean up, and enhance lower quality recordings.

It is possible to put together a nice home studio, without breaking your budget to do it.

If you are mostly going to be making beats for rapping over you might want to take a look at this.

Beat Software

Awesome new Production Software for Beats. It wont take the place of a real studio and Pro software, but if you don’t have a few G’s to drop down on the gear, you wont find a better program than this one.

You can be making some great sounding beats in minutes. This software is an affordable alternative, and a time saver. If you’re looking for some nice beats to rap over, this will let you make your own, and not break your wallet to do it.

If you want to make great beats on a budget click this link