spend most of your money on the amp. just like home stereos, the weakest link in most people's systems are the speakers. if you have $300-$400 to spend, that should put you in a small, used fender combo (princeton, maybe - i got mine for $375), which will give you reverb & more than enough volume to get you kicked out of your apartment!
you don't want to spend a lot of money on a guitar until you have a bit of experience & feel. there are HUGE differences between brands & models within those brands, so you should really have a grip on what you like to play.
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