Q: Do you need to host a node on the same VPS as you're running the #BTCPay server on or can you connect remotely to the node using c-lighting-rest, spark, etc?

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A connection via VPN is possible. The whole thing via LND-Rest, for example.

I'm running Core Lightning so but I guess the TCP option on c-lightning is c-lightning-rest. Thanks anyways, I'll check out the docs.

Did you set up a Wireguard tunnel for the LND-Rest traffic?

Tailscale would also be an option that works reliably.

Tailscale seems so corporate, I just want a simple tunnel between two computers

Setting it up might require a bit more technical knowledge compared to using a service like Tailscale. But WireGuard could be a great solution for you.

You don't. It can be anywhere as long as you have network access to it.