I made my first pipe from a pre-drilled kit with a Dremel, rasps, Nicholson files, chainsaw file, and sandpaper. It wasn't very good but it's a good place to start to see if you have what it takes and/or enjoy the process.
To speed up shaping, a cheap disk sander will work. I stripped down a Delta belt/disk sander combo. I still use it but modified it by stripping all the frame off, adding an arbor from Kurt Huhn, and using different hook and loop disks. The minimum you will want to drill your own blocks is a floor model drill press, modified spade bits for drilling the chamber, long 5/32" (or whatever size you want your airway), and a drill press vice. Milling vises are even better. You'll also need tools to turn tenons which can be done on a drill press with some ingenuity and the right tools. You can do some drilling with a benchtop drill press but you will find out it's limitations very quickly. You can also use a regular drill clamped down in a vise or homemade device too but you'll likely get pretty frustrated with the difficulty and poor results.
Or, you can skip a lot of frustration and buy a lathe from the start.