Thats pretty much what we did. Except one mic for drums, one mic for vocals, and a guitar and bass just fed into the soundboard. It would have been done better, but i have no money for anything else.
Reminds me of when I started. You gotta do what ya gotta do with what ya got! Experiment more and more with simple techniques, and if you really get into the recording stuff, then start multitracking etc.