ESXi is my go to hypervisor but I think proxmox is more popular here & /r/homelab.
Either way, yes 100% you should put a hypervisor on it.
If you are not going to do hardware RAID on the server then one small SSD for the OS I suggest then another high quality SSD (2.5 or Nvme via a PCIE adapter) for VM storage primary storage then a HDD if you want storage on the server also.
I often have a VM with 2 virtual disks assgined, one on the SSD and one on the HDD.
I suggest a Hypervisor on the hardware always. Promox, ESXi or Xen. Then run your large OS’s as VM’s on top, you won’t regret it.