Originally Posted by Everyday
I would recommend VPS since you can realize some profit for less investment. You could rent a dedicated server and sell VPS's on it and make a fair buck if you do it right. Dedicated is hard to do unless you have your own infrastructure. Now if you're going to sell dedicated and offer some kind of additional service with it, such as management or software then it might be worth it to rent some dedicated server. VPS is probably the best to start out with though.
Im not sure but im pretty sure the OP meant Shared Hosting, in any case, i would advise VPS to start with, but not a $5 one, look for a reputable company with a good service background.