Can you help us out a little with examples of what artists, albums, songs or styles you like or want to get into? Hip hop is a HUGE category of music with all sorts of styles, sounds, instrumentation and technologies. What if anything do you have so far to start with (i.e., computer? headphones? turntable? records? tapes? CDs? etc.)? MadHatterTCM has good advice for one way of starting but it may do you no good if you do not want to use your Internet computer or do computer-based recording and producing.
I am not sure you are going to find any useful answer to your question. On the super small budget when I was young, I started using a cheap four-track tape recorder and a cheap Radio Shack microphone and could record old record samples using my family's turntable recorded directly in to the recorder. I was not going to be producing Dr. Dre hits anytime soon with that setup but it was a start to learn recording and getting my ideas onto a playback format. Slowly over my 33 years of life I have acquired real instruments then MIDI instruments, cabling systems, progressively-better mics, hard-disk digital recorders then computer-based recording software, preamps and mixers for better recordings, digital interfaces and converters for the computer setup, real and then computer-based effects and plugins, etc. My skills and understanding of the recording and producing processes have [hopefully] gotten better with time and practice and my setup has gotten better with thousands of dollars of investment over the years. I am still not a professional but I can create my music and enjoy it.
If you are first starting out, accept the fact that this is going to be a time-consuming and expensive journey that is not going to happen overnight. Start with a budget microphone and a simple audio recording device of some sort (tape, CD or computer) and learn to start recording and putting music together with what you have. Your setup does not have to be anything impressive because your first experiments and recordings will likely not be anything impressive. You can acquire more and better equipment as you learn the art and the skills and learn what you are missing from your sound. Have fun making your music and the rest will fall into place. Good luck!
