Well first of all, based on what I know about the project you are going to make, I’d recommend focusing on getting it working with a listen server. The only real reasons of using a dedicated server are:
- Your game needs so much processing power or so much network bandwidth that it wouldn’t just be reasonable to assume that some random player has a good enough computer host a game
- You want no actual player hosting the games so that no player has the authority to do whatever they want to (for instance if in let’s say a Fortnine match some random player would be the server, they could literally do what they want, instantly kill every player and win for example)
So unless you need one of those benefits (and also have access to a machine with great processing power and network bandwidth) supporting listen servers should be enough.
For the physics stuff, the network bandwidth your physics simulation needs just depends on: how much physics simulating objects you have, and how often do you need to replicate the movement of them. I you don’t have a ridiculous amount of physics stuff, and you implement the replication well (not too frequent net updates, client side predictions, interpolation, etc), you shouldn’t have any network problems with a decent internet connection.
And finally the type of server you use doesn’t limit your resources in any way, so was it a listen server or a dedicated server, your network bandwidth is the same!