Home studio

Hello, I'm new to this, but what would you guys recommend for a low-cost home studio?
I've been wondering whether or not I should spend money on various microphones for different instruments, for example I assume that it's costly to get multiple ones for the drums. But specifically for bass and guitar, do you think I even need to mic it up, as in, is it possible to add decent effects similar to those of a speaker on a DAW? And now that I'm on the subject of DAW's I was also wondering which is the best one you can recommend, that is affordable, i.e. I'm not looking into the $2k ones.
Thanks a lot in advance,


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