I use Garage Band on my Mac, and a Blue Microphones "Yeti Pro" USB mic that I bought used on Reverb for ~$100. I use an old set of $20 Sony headphones.
I think my goals and objectives are a little lower than yours, but ultimately I want to be able to make some recordings to share with family/friends that sound like a dude playing/singing pretty well.
The raw recordings absolutely need to be adjusted tweaked with the controls Garage Band provides - but I've been rather satisfied with the results I've gotten.
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