Thats the $64000 question we all asked ourselves as well.
Every weekend for the past few weeks, I have been in a recording studio with a singer to produce a CD featuring her voice. I have also recorded the same singer some time ago on my old home Cakewalk Express set-up (I've come a bit further since then) which was very basic. It didn't have a £2500 mic, a rack-mounted compresser and de-esser, a Reverb unit and $3000 studio quality speakers. Let alone a $15000 mixing console. But by taking care with what equipment I did have, I produced a sound that wasn't bad at all. And now, when I review both CD recordings together, of course, there is a difference, but it ain't as big as it used to be years ago when I used good quality domestic tape recording machines and still couldn't get a decent mix down. And for general use, no-one, only perhaps a muso or a real discerning listener could say that one of the CD's was less "professional" than the other. And over time, I will add gear to it so that quality improvements will happen, along with honing my skills and experience which must in the end, mean better results.
But the sheer pleasure and joy I get from recording what I write and produce is out of all proportion to the equipments cost. I find myself litening to the musicianship, not the quality of the recording, which must mean that by and large, the recording is transparent. And therefore, pretty good. Thanks to CW and modern PC technology.
So my advice is go ahead, jump in, you will not be disapointed and with help from this community forum, there is a ready flow of great support and advice.