Newbie here. What projects should I create for portfolio purposes?

Maybe a personal website containing your experience and CV. Website presenting form element of your own design. That would be a starting point.

Thanks. What tool do I use for this? Where do I do this?

Use html and css to write a pages. You can use github.com to host the actual website. Try few courses they will explain everything. It's will involve some hard work though.

I am a newbie as well, I've been learning seriously for the past 3 months. I am almost finished building a fully responsive barber website for my sister's fiance as a way to apply what I learn directly from each video. I've rebuilt the site so many times and it really helps me to grasp what I am learning.

If you have a friend or family member who is self-employed I would suggest you build them a site because it will encourage you to work towards a goal. If you can't find anyone to make a site for, find something that you are passionate about and make a site about it. Could be about personal growth, religion, food, crime, politics. etc. If you have any questions or need help I would be glad to supply you my contact info.