New to podcasting and thoroughly confused about equipment

Hey Everyone,

Me and a few of my friends are very interested in starting a national security podcast but I'm very confused about the kind of equipment I should get.

We're thinking about having five co-hosts (me and my friends), the occasional guest, and the ability to add live sound effects during the show. I'm assuming this calls for at least 7 lines? I'm open to a budget of about $400 or a little more if need be. Can I get away with being able to record all of us with less lines?

Thank you!