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VMware workstation works great. Just install Windows or linux on the box, workstation, and fire up all the VMs you could dream of, while using the PC as a normal PC.
But just know that any time you need to reboot your PC PC you need to reboot your server, which sucks. It's much better to just keep the old office PC. That old i5 uses so little power at idle vs a modern CPU being perpetually kept awake.
VMWare Workstation is a Type 2 hypervisor and the performance is horrible.
I can't find any benchmarks comparing workstation to ESXi. But for work we spend most of our time in type 2 hypervisors and performance is just fine. Just make sure you're not using the Windows Hypervisor Platform because that does have a huge performance penalty. Considering OP uses an old i5 I'm sure a modern CPU would handle the load just fine.
But importantly workstation has something ESXi doesn't, 3D Acceleration. And if you're doing anything graphical it makes a huge difference.