If you guys were starting out in the home-recording world, and had $900 to spend. What would you guys buy and why? Would you lean more toward gear or maybe making the room sound better?
All the gear in the world is worth a bowl of warm sinus fluid if you can't hear it with reasonable accuracy. Monitoring & room treatment (no, not throwing foam all over the walls) is paramount.
I'd treat my entire, small room. And get one good microphone. I'd probably try to spend about $400 on room treatment and the other $500 on a microphone, or maybe the other way around.
I'd try to treat it more for tracking than mixing, even though both are important. I'm not sure why, but I never have any problems with bass while mixing or getting my songs to translate to other systems. Maybe I'm just lucky.