There was an abandoned room under his and Seto's dorm. He found it while cleaning when he had heard a squeaky floorboard when he dropped a box of clothes off his bed.
Ty and Seto when down and fixed it up, Ty uses it as a DJ space where he invites friends and 'fans' down.
Ty raps and dance battles people, really just takes any challenge given to him and destroys the competition.
He's only lost one challenge,

...Adam challenged his to sing against him.
Ty can't sing at all really.
But that's the only time he's been beaten. And he reclaimed his title as 'Rhyme King'
Seto sometimes takes over the turn table when Ty can't manage it.
Everyone was surprised to find out the 'Rhythm Wizard' was the quite contemporary dancer.