Personal Home Server
I bought two Xeon 6 core CPUs, a motherboard, & 32GB of ECC RAM off of Ebay for $235. You can probably get a decent hardware server for less than that (note that is ~£136). Note that this is a powerful server. A single Xeon with 16GB of ECC RAM would be more than enough, so you could probably get by with $150 or so (£87 or so).
Note that I had to bypass some really good deals because they were UK only (I didn't notice the .co.uk until I was about to buy it).
I suggest doing that and using FreeNAS. It's FreeBSD based, but many commands are similar to Linux (though not all obviously).
I have Plex running on my server as well as a MC server and both rock on like nobodies business (Plex streaming is great & MC FPS is between 45 & 120 with certain texture packs).
As long as you buy from trusted sellers with good reputations that have buyer's back guarantee, there's nothing to fear.

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