Instead of a RaspberryPi, use a small form factor PC. It will have more power (downside is it will consume more electricity) but give you more options to upgrade or host more services in the future should your needs change. You can find these on eBay or used for not much more money than a Pi these days. Would replace the nvme drive with a fresh one.
There are ones from Dell, HP, Lenovo etc in this small form factor.
You can look into Proxmox as a virtualization solution.
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Lenovo ThinkCentre M920 and M920q Tiny Guide and Review
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