lots of good advice for you to sort through KarelD but I've noticed a couple of folks have suggested buying a condenser mic. I am pretty sure your H2 already has a condenser mic! so don't buy stuff you already have even if others like it!

and that advice also applies to RealBand...if you own BIAB you already own RealBand so giving it a try makes a lot of sense. and, as I mentioned before, Reaper is a great DAW that has an unlimited free trial and only costs something like $60 if you decide to keep it so you should try both and compare and decide what you like better!