this post was submitted on 05 Jul 2023
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There are plenty of people that do this, and it seems to be pretty straightforward.
There is a significant risk going forward though- if the undesirables (the ones that currently get larger instances defederated) start doing this in any major way, then the larger instances will block new federation or smaller instances by default. Starting now is actually probably a good move, since you might be grandfathered in when that occurs.
Also, be aware of local laws regarding content you host. You could be liable for illegal content you inadvertantly receive.
I think it's inevitable; I imagine that in the future there will be an application and vetting process if you want to federate with a major instance, as most users will not be interested in running their own instances, and your federation can be a source of work for the mods/admins.