Hardware
First: What kind of recording you're going to be doing? If you think your endeavors will consist mostly of software and electronic sounds or non-acoustic instruments like an electric guitar, your hardware choices will differ from someone itching to record their eclectic collection of hand drums.
Microphones
Getting a good recording is key. If you plan on recording live instruments, consider spending some money on a microphone upgrade. Microphones (at least mics worth buying) won't be cheap, but they will have a big impact on the tone and overall quality of your work.
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Zoom iQ6 Stereo X/Y Microphone
Maybe you want to keep things simple and portable, in which case external mics like this Zoom iQ6 Stereo X/Y Microphone should suffice as long as you're not planning on recording raucous amps or drums. Conveniently, the Zoom iQ6 plugs directly into the Lighting port of your iPhone.
There are plenty of well-received condenser mics currently available for about $100, including the Audio-Technica AT2020 and the MXL 770, and either of these should cover all your vocal and guitar or guitar-adjacent bases.
Pictured: Audio-Technica AT2020
In order to use those mics, however, you'll need to purchase a separate interface with an XLR connection and phantom power, which sends electricity to the condenser mic's preamp. This interface from iRig (a company we'll return to in a second) will connect and power a condenser to your iPhone without breaking your budget.
If you want to record directly into your phone using a line-in, you can also buy an interface (not just an adapter) that allows you to plug a quarter-inch jack directly into the lightning port in your phone. This will allow you to use software like Garage Band to record your electric guitar.
IK Multimedia iRig HD
In this department, you might want to consider a compact interface and preamp like the IK Multimedia iRig HD, which comes with two channels for either guitar or bass (or both) and allows you to connect to an iPhone or iPad. With the adjustable gain, the iRig will also help to ensure your signals are coming in crisp and clear.
Flip
Alternatively, if you're trying to get into sampling, check out Flip from YouTuber and musician Andrew Huang. Flip makes sampling a breeze, and you can also do a ton of stuff to work with the sound. Highly recommended.
FL Studio Mobile
FL Studio Mobile is another DAW you may want to consider if you're looking for an experience beyond just Garage Band. Like the desktop version, FL Studio Mobile comes with baked-in effects like audio compression, delay, phasing, and more, all with FL Studio's intuitive interface. You'll be flying without some of FL Studio's best tools (like their Edison audio sampler), but for a mobile DAW, FL Studio is a good mixture of simplicity and capability.
While there's plenty of other hardware you could add to your iPhone-centric home studio (perhaps an Orba?), a microphone, interface, Garage Band, and some decent headphones are enough to get you up and running with enough tools to record just about anything short of an entire drum set, orchestra, or brass band.