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Building Your First Homelab: Practical Starter Projects and Essential Hardware

Updated 2025-11-12

What a Homelab Is (and Why It Matters)

A homelab is a safe, always-available environment to learn, experiment, and self‑host services. It can be as simple as a Raspberry Pi on a shelf or as complex as a rack with multiple servers. The goal isn’t fancy hardware—it’s hands-on experience with the same concepts used in professional IT, cybersecurity, and DevOps: virtualization, networking, automation, monitoring, and backups.

Because it’s your lab, breaking things is part of the plan. You’ll iterate quickly, build confidence, and create a space to test ideas before touching production. If you’re working toward roles in sysadmin, cloud engineering, or security, a homelab is the most effective way to build portfolio-ready skills.

Core Components: Compute, Networking, Storage, Power

Compute

Start with what you already have and scale when needed. Common beginner-friendly choices:

  • Repurposed Desktop (e.g., Dell OptiPlex 7060, HP Elitedesk) — Inexpensive, quiet, and great for Proxmox + Docker stacks. Aim for 32–64 GB Random Access Memory (RAM) and SSD storage.
  • Mini PCs (Intel NUC/Minisforum/Beelink) — Low‑power nodes, ideal for 24/7 services like Home Assistant or Pi‑hole.
  • Used Enterprise Servers (Dell R720/730, HP DL380) — High core counts and RAM, but consider noise and power draw; place in garage or closet if possible.
  • Single-Board Computers (Raspberry Pi 5) — Perfect for light services and learning ARM builds.
Example homelab compute options: desktop, mini PC, rack server, Raspberry Pi
Pick hardware based on noise, power, and the services you plan to run.

Networking

  • Router/Firewall: Options include Firewalla Gold SE (simple/visual), pfSense/OPNsense (DIY firewall with deep control), or Unifi Gateway for unified management.
  • Switches: Prefer managed switches for VLANs and trunking. Even a small 8‑port managed switch unlocks segmentation and QoS.
  • Wi‑Fi: Using APs that support multiple SSIDs + VLANs lets you isolate IoT/guest traffic from core services.

Storage

  • Simple Network Attached Storage (NAS): A used Synology/QNAP or a DIY NAS (TrueNAS Scale) delivers SMB/NFS shares and snapshots.
  • Disks & File Systems: For DIY, consider Zettabyte File System (ZFS) (RAID‑Z, snapshots, scrubs) or Btrfs (checksums, snapshots). Add an SSD for caching (L2ARC) if you serve many small files.
  • Backups: Follow 3‑2‑1: three copies, two media types, one off‑site (cloud or a drive you keep off‑prem).

Power & Cooling

  • Uninterruptible Power Supply (UPS): A 1000–1500 VA UPS (e.g., CyberPower or APC) protects from brownouts and gives time for clean shutdowns.
  • Airflow & Noise: Keep servers dust‑free, ensure intake/exhaust aren’t blocked, and consider quiet fans for desktop‑class nodes.
  • Power Budget: Measure draw with a smart plug or watt‑meter. Idle consumption matters more than peak—optimize for services that need to be always‑on.

Your 2025 Software Stack

The goal is dependable, reproducible deployments. A common pattern is Proxmox for virtualization and Docker for apps, with IaC/automation to reduce manual work.

  • Virtualization: Proxmox VE for VMs and LXC containers; optional Graphics Processing Unit (GPU) passthrough for Plex/Frigate.
  • Container Runtime: Docker/Podman; compose files stored in Git for versioning.
  • Reverse Proxy: Traefik or Nginx Proxy Manager for TLS (Let’s Encrypt) and clean URLs.
  • Monitoring: Prometheus + node_exporter + Grafana; uptime checks (Uptime Kuma).
  • Secrets: 1Password/Bitwarden; environment files kept out of Git; consider SOPS or Vault.
  • Automation: Ansible for base OS config; Terraform for any cloud resources.
Example: Proxmox host layout
Proxmox Host (32–64 GB RAM)
├─ Virtual Machine (VM): pfSense/OPNsense (if not using standalone firewall)
├─ VM: NAS (TrueNAS Scale) or LXC for ZFS datasets
├─ LXC: Pi‑hole / Unbound
├─ LXC: Docker node (Portainer/Compose)
└─ VM: Plex/Jellyfin (optional GPU passthrough)

Beginner-Friendly Starter Projects

1) Network‑Wide Ad Blocking with Pi‑hole

  1. Deploy Pi‑hole in an LXC or on a Raspberry Pi.
  2. Point your DHCP/DNS to Pi‑hole; enable a backup DNS (e.g., Unbound).
  3. Review Top Clients and Queries; add allow‑lists for services that break.

2) Media Server (Plex or Jellyfin)

  1. Attach a storage dataset for media; organize by Movies/, TV/, Kids/.
  2. Run Plex/Jellyfin in Docker; map transcode directory to an SSD.
  3. Optional: enable hardware transcoding (Quick Sync / NVENC) if your hardware supports it.

3) Home Automation (Home Assistant)

  1. Deploy Home Assistant Container or VM; integrate Zigbee/Z‑Wave via USB coordinator.
  2. Create separate Virtual Local Area Network (VLAN)/SSID for IoT; restrict east‑west traffic to your core network.
  3. Automations: presence‑based lighting, door‑open alerts, energy monitoring.

4) Reverse Proxy + TLS

  1. Run Traefik or Nginx Proxy Manager (NPM); request Let’s Encrypt certs via HTTP‑01 or DNS‑01.
  2. Expose services at https://app.yourdomain.tld with auth (Authelia/SSO) for sensitive apps.
  3. Don’t expose admin dashboards directly—use a VPN or SSO.

5) Automation Primer with Ansible

  1. Write a playbook that installs Docker, adds your user to the docker group, and pulls your core stacks.
  2. Template your docker-compose.yml files; store everything in Git.
  3. Run the playbook when you rebuild a node—minutes instead of hours.

Networking Best Practices (VLANs, DNS, VPN)

  • VLANs: Separate LAN (users), SERVICES (servers), IOT (smart devices), and GUEST. Tag trunks between router ↔ switch ↔ APs.
  • DNS: Run Pi‑hole/Unbound; block ads and telemetry; keep a secondary resolver.
  • VPN: WireGuard or Tailscale for encrypted remote access. Avoid exposing services directly to the internet.
  • DHCP & IP Plan: Use reservations for servers; document subnets and gateways.
  • Security: Default‑deny firewall rules between VLANs; allow only what you need.

Budget Builds & Buying Used Hardware

You can start small and grow into more advanced gear. Here are two realistic starting points:

Starter (~$250–$400)

  • Used SFF desktop (i7, 32 GB RAM, 512 GB SSD)
  • Managed 8‑port gigabit switch
  • Raspberry Pi (optional) for Pi‑hole or Home Assistant
  • CyberPower 1000–1500 VA UPS

Enthusiast (~$800–$1,500)

  • Proxmox host with 64–128 GB RAM + Non-Volatile Memory Express (NVMe) cache
  • TrueNAS Scale (DIY with 4–8 HDDs on ZFS)
  • Unifi/OPNsense firewall, managed PoE switch, dedicated Access Point (AP)
  • Rackmount UPS, PDU, and structured cabling

Buying used tips: Check SMART data on drives, inspect fans for wear, verify RAM slots and BIOS versions, and factor in shipping on heavy servers.

Monitoring, Backups & Documentation

  • Monitoring: Prometheus + Grafana dashboards for Central Processing Unit (CPU), memory, disk, network; alerts for high temps and low disk space.
  • Backups: Proxmox snapshots + off‑box backups (Proxmox Backup Server or restic to cloud). Test restores quarterly.
  • Logs: Centralize with Loki or ELK; forward syslog from network devices.
  • Docs: Keep a README in Git with network diagrams, IP plans, VLAN tags, and Ansible/Terraform commands used to deploy.

Upgrade Path: From Single Node to Cluster

  1. Phase 1: Single Proxmox host + Docker LXC + Pi‑hole.
  2. Phase 2: Add a NAS (TrueNAS) and move stateful data off the hypervisor.
  3. Phase 3: Add a second Proxmox node for HA; configure shared storage or PBS for backups.
  4. Phase 4: Introduce automation (Ansible/Terraform) and secrets management; expand monitoring.

My Current Setup (Example Topology)

This is a representative example to help you visualize a real deployment. Adapt to your environment and hardware.

  • Firewall: Firewalla Gold SE (remote WireGuard (WG) server) or pfSense/OPNsense VM
  • Switch: 24‑port managed (VLAN‑capable)
  • Proxmox host: 64 GB RAM, NVMe cache
  • TrueNAS Scale: ZFS pool with snapshots and replication
  • Services: Pi‑hole, Plex/Jellyfin, Home Assistant, Traefik/NPM, Uptime Kuma

FAQ

Is Proxmox better than ESXi or Hyper‑V for beginners?

For homelabs, Proxmox is popular because it’s free, modern, and supports both KVM VMs and LXC containers. ESXi is excellent but licensing and feature gates can be limiting for new builders.

Should I start with Docker or Kubernetes?

Start with Docker/Compose. You’ll learn networking, volumes, and reverse proxies without the overhead of K8s. Move to K3s later if you need orchestration.

How do I keep my homelab secure?

Use VLANs, default‑deny firewall rules between segments, a VPN for remote access, and keep admin interfaces private. Patch regularly and monitor logs.


Where to Go Next

Have questions or want to share your build? Contact me.