I would go for the "Meerkat" mini computer with 4.5MHz CPU, 64GB memory, and 2TB SSD storage which would cost about $883.00. With this setup, you now have the ability to run 5 to 6 VM instances concurrently. I would also go to SanDisk and purchase one of their 2TB USB drive. This drive will be used for your BTC blockchain and VM backups from your host.

Use Linux. See system76.com. I'm using POP!_OS and happy with it.

Creates VMs on your host. Virtual Box works for me. I have one VM dedicated to Bitcoin Core and Lightning and etc...