Well, I'll give it a go. I'm sure someone will point out the flaws, but here goes. If I had absolutely nothing but a bedroom or garage (or maybe even a living room/den) and possibly an adjoining room for tracking bigger instruments like drums, this is what
I'd do:
(Note: I'm assuming you have some instruments or that they will be brought to the studio)
1
$500 for DYI acoustic room treatment: This should cover 4 bass nice traps and plenty of reflective panels (behind speakers, on the side walls, hanging above mixing position, far back wall - behind you as you mix), and you should have some left over for a few moveable gobos too. This is based on my personal experience using 2" (4' x 2' sheets) mineral wool insulation. (Actually, I bought several panels of OC 703 first, but once I got some mineral wool and couldn't tell the difference sonically between the two, I started buying mineral wool for all the rest because it's much cheaper.) This will also cover boards for frames, fabric for covering, and extra staples (for a staple gun --- if you don't have one already, a $20 or $30 will do the trick). This won't be the best acoustic treatment you can get, obviously, but it'll certainly do the trick (in my opinion).
2
$1000 for a Tascam 38: This would include a machine in good condition and most of the accessories needed to maintain it, such as a calibration tape, demagnetizer, head cleaning fluid (only $7 or $8), rubber cleaner (again, $10 maybe), etc. You can use a software oscilloscope if necessary. There may be a few other things that come up which will require some extra purchases, but it's a good start for sure.
3
$500 for 1/2" tape for the Tascam 38: This should get you a decent stash to start with.
4
$500 for a used 16 channel/4 buss analog mixer (or 8 buss maybe): This could include
Tascam M-2600, M-224, 2516, M-216, etc.
Yamaha MC 1604, etc.
Or you could get a newer mixer. I just prefer the older ones because IME, the build quality is usually better, and I generally prefer the sound of the preamps. (I love the preamps on my Tascam M-216, for example.) The main thing is to have at least 4 busses, 8 channels for tape input, preferably 2 aux sends (though one could work), decent EQ (sweepable mid at least), and preferably phantom power.
5
$500 for a pair of decent used FX processors:Options are many
Yamaha SPX 90
Roland digital delay (SDE-1000 or 2000)
Lexicon
etc.
Again, I prefer the older stuff, but that's just me. You could get a few newer things too in that price range that would do the trick as well. $500 could easily buy you 3 or 4 different older units as well in the used market, depending on what you go with.
6
$500 for compressors:This should get you 8 channels of nice, decent compression, such as:
DBX 166 (2 ch), 160XT (1 ch), 163 (1 ch), 160X (1 ch), 160A (1 ch), 163X (1 ch)
These are all the nice, older compressors before DBX started making crappier stuff.
7
$1000 for a nice 2-track R2R deck:This could include maybe a Tascam 32 or 42, Otari MX5050, etc. and the accessories to maintain it.
8
$500 for a used power amp and studio monitors:This could get you, for example, a pair of Yamaha NS-10Ms and a power amp with 100 watts per channel, which should be more than enough.
9
$500 for several outboard EQs:This could be a combination of a few parametric and graphic ones.
10
$1000 to build several different external preamp clones from kits available online. Seventh Circle Audio, for example, has a bunch. This should get you probably 3 different channels of nice clones (like Neve, API, etc.) for some variety to add to your mixer's pres.
11
$1500 for used mics: This should get you probably 4 Shure SM57s, a nice pair of small diaphragm condensers (such as the Octava MC 012), a pair of nice, decent large diaphragm condensers, such as an AKG C414, Shure KSM44A, Neuman TLM 102, etc., and a decent kick drum mic, such as the AKG D112 or a Shure Beta 52, etc.
12
$250 for materials to build a custom mixing desk with rack rails
13
$250 for mic stands
14
$750 for bulk cables and accessories to make my own cables and wire everything upMic cables, 1/4", RCA, etc.
15
$200 for a 16-channel cable stage snake
16
$100 for used patchbays: I spent this much and got one 48 channel and two 32 channel units.
17
$200 for several (4 or 5) used sets of decent headphones
18
$250 for other incidentals: Power strips, cable ties, cable bundlers, few DI boxes, etc.
Well, that's what I'd do. Of course, this may be not worth the time of day for some people, but I'd be proud to call this my studio!
Now ... what did I forget?