---
title: "Homelab From Scratch — Budget-First Design"
aliases: [homelab-budget-build, homelab-rebuild, homelab-ideal-setup]
tags: [homelab, nas, networking, proxmox, unraid, budget, hardware]
sources: [raw/Rebuilding My Homelab From Scratch.md]
created: 2026-04-15
updated: 2026-04-15
---

## What Makes a Good Homelab

Three axes to balance — all relative to the owner's needs:

- **Functionality** — does it run what you actually need? (media server, home assistant, backups, VMs)
- **Reliability** — downtime tolerance depends on who depends on it; clusters/HA only worth it if hosting for others
- **Cost** — hardware + software licences + ongoing electricity; efficiency matters more in high-rate regions

## Four Core Components

| Component | What it covers |
|-----------|----------------|
| Compute | CPU/RAM for services (VMs, containers) |
| Storage | NAS, drives, RAID |
| Networking | Router, switch, access points |
| Space | Rack, closet shelf, UPS |

## Budget Build Path (ordered by priority)

### 1. Storage First — Repurposed Desktop NAS
- Used Dell Optiplex / Lenovo P330 as NAS host (~$70 with cheap SSD)
- Install **Unraid** or **TrueNAS** — both run services alongside storage
- Start with 2× drives (e.g. 12 TB WD from Server Part Deals, ~$105 each) in basic parity RAID
- Add drives later as needed
- Low idle draw: some Lenovo desktops idle at ~6 W without GPU

### 2. UPS — Buy Early, Not Last
- Get one with a **power draw readout** (useful for tracking electricity cost)
- CyberPower models ~$190 — most expensive single item in a minimal build
- Ensures clean shutdown on power loss; worth it even for a basic setup

### 3. Networking
- **Option A — Easy start:** use ISP-provided router; avoid buying access points and PoE switch upfront
- **Option B — Budget custom:** flash **OpenWrt** on a cheap router (e.g. Dynalink ~$60) — gets you Wi-Fi 6E + built-in switch + AdGuard Home + WireGuard, all in one box
- **Option C — Full custom:** fanless mini-PC running pfSense/OPNsense + separate PoE switch + access points (most flexible, most expensive, most maintenance)
- Switch: 1 GbE sufficient for most; add a 2.5 GbE switch only if editing off NAS

### 4. Tinkering Machine (Optional)
- Used SFF mini-PC (Lenovo ThinkCentre, HP EliteDesk) — cheap, expandable with M.2 e-key slot for 2.5 GbE
- Run **Proxmox** for VMs/containers — keeps experiments isolated from production NAS
- Prevents breaking Jellyfin when testing new services

### 5. Extras (Wish-List Tier)
- **Minisforum MS-01** — i5/i9 mini-PC with PCIe slot, 3× M.2, built-in 10 GbE; overkill for most but powerful
- **KVM over IP** (e.g. JetKVM ~$70) — remote console access when away from home
- **Backup NAS** — second cheap machine (old Netgear ReadyNAS, HP EliteDesk) on a power schedule; runs a few nights/week, not 24/7
- **Thin clients for clustering** — buy 3–5 cheap thin clients off eBay/Marketplace for Kubernetes or Proxmox cluster experiments

## What to Avoid (Unless You Have the Space and Budget)
- Full-size racks — expensive to fill, take up significant space
- 10 GbE throughout — only needed if editing video off NAS
- High-availability clusters for personal use — overkill unless hosting services for others

## Rough Cost Breakdown (2024 prices, no deal-hunting)

| Item | Approx. Cost |
|------|-------------|
| Used desktop (Optiplex/ThinkCentre) | ~$50–80 |
| 2× 12 TB HDDs | ~$210 |
| UPS with display | ~$190 |
| OpenWrt router | ~$60 |
| 2.5 GbE switch | ~$40–60 |
| **Total** | **~$550–600** |

## Key Takeaways

- Start with storage — a repurposed desktop running Unraid covers NAS + services in one box
- Buy the UPS early; it's the most expensive single item but protects everything
- OpenWrt on a cheap router beats both ISP-router-only and full pfSense rig for most people
- Keep tinkering machines separate from production to avoid breaking things for household users
- Avoid racks and 10 GbE until you have a concrete reason — they invite scope creep
- A backup NAS on a scheduled power-on is good enough for non-critical media; run it a few nights per week

## Related

- [[wiki/homelab/proxmox-install-setup-2025|Proxmox Install & Setup 2025]] — hypervisor setup once you have the hardware
- [[wiki/architecture/_index|Architecture Patterns]] — Docker Compose and multi-service design

## Sources

- YouTube: *Hardware Haven — Rebuilding My Homelab From Scratch* (2024-11-16)
  `raw/Rebuilding My Homelab From Scratch.md`
