An enthusiastic two thumbs up to this approach. It's exactly what I run at home that has been working solidly. I run on an N100, which is just a hair smaller than an i5-8500, with 32GB DRAM and a 1TB SSD (total overkill). I keep it under proxmox; the box also runs my unifi SDN controller, pihole, and a linux VM for various little services. Two USB dongles for z-wave / zigbee / matter (because I'm a glutton for punishment). Backed up to a NAS. It's fast, easy, and has been very reliable.