This is my current music production setup>>
1) A Laptop [I use it for DJing and Producing]
2) Ableton Live 9 Suite
3) A Pair of Home Stereo Speakers
4) A Comfortable pair of Headphones
5) A Shure SM-58 Microphone.
This setup has worked quite well for me till now. I am just about to buy either the Novation Launchkey Mini or the Akai MPK Mini. And, Once I save up enough, I will buy a good soundcard like the Numark DJ io. Since I won’t be recording any acoustic instruments, that will give me good quality output as well as complete my DJ setup.
Home Recording For Musicians for Dummies By Jeff Strong was very helpful to me.