I have been in the recording industry for over 15 years and I want to share some of my experiences. I have found over the years that above all else, "it's the cooking, not the kitchen" applies to recording. I have personally seen people do a mix and throw the kitchen sink at it, using every piece of top gear available, and then the next guy using nothing but the console and one reverb. Both sounded amazing.
At the end of the day yes, great gear does make the job easier, but it's easy to reach a point of diminishing returns. If you have a basic understanding of equipment and acoustics, it's easy to get great results in an apartment, or a world-class studio.
A few tips:
1. Always start with the source. Make sure the instrument is tuned correctly and sounding the best that it can in the room before ever putting a mic on it.
2. Choose the best spot in the room. Pay attention to any glass or very reflective surfaces in the room and avoid them or cover them with blankets. If the room has a lot of ambience/reverb then do what you can to deaden it. Hang blankets or foam. Even create an enclosure using mic stands with blankets hung over them, this is more effective than hanging them on the walls far away. This will enable you to add any effects later and be able to control it, if you record it with the ambience than you can never take it off.
3. Make sure the song is great before you ever hit record. Many amazing songs that are classics don't sound very good sonically, and it doesn't really matter. A great performance is always more important than the quality it was recorded.
There are many more tips and advice I can give to create an amazing recording, and I plan to do so in the near future. Please feel free to ask me any questions you may have I am happy to share my knowledge of the art.