Will this be overkill or otherwise not recommended for someone who is new and just starting to learn?
My goal is to have something I can grow into, but initially I'd like to host a few VMs, game servers, and a have place to store content. I'd also like to host a PLEX server in the future as well but might buy a separate piece of hardware for it specifically down the road. Thanks in advance for taking the time to help a newbie!
Well, R720 is quite old. I would look into R730/R630 options. Or ideally, use some hardware that you already have. An old laptop with Proxmox might very well be a start.