I had a 10 dollar a month host and I blew that up (script executions per day/month) in about 3 weeks. So I had to upgrade to VPS. Hopefully ill need a dedicated server shortly down the road. So id just like to get this done now. My computer has the power since my current host is offering a dedicated server with my specs for 249 a month (crooks). So im thinking with the 5 static IP's Ill get from the business internet, I can use one for my site and keep it separate from my home network. Maybe I just think this is more simple than it is. But I have a new machine im not using, and the extra internet it would cost me is well under what VPS is costing me.
The cost of the server is generally due to data center space, power, backup and maintenance, etc. I think you're underestimating what's required for your own server, but if you want to try it I say go for it, it's a good learning experience for setting that stuff up if nothing else. If it doesn't work out you can always move it down the road. Personally speaking I hosted my own server for a little bit and even with a fiber connection I had some issues with site speed during peak times. Right now I pay $79.00 / month for a dedicated server which I host all of my stuff on without any issues at all.