Sorry for the delayed response and thanks a lot for your reply. Unfortunately it turns out the seller doesn't have these any more, so I will have to go back to the drawing board....Yes, that would work very well. It's what I did using that exact model for several years until moving to VSphere.
I did also add more RAM and drive space as my needs grew, but your 16GB and 256GB should be fine to start. I don't know the US market, but that would be an extremely good price for that configuration if it was here in the UK.