SharePoint 2013 provided hosted app

Hi folks,

I have SharePoint 2010 farm solution(.wsp) ,now I want to recreate a provider hosted app. 

Below are my queries

1) I dont have any cloud account ,can I host it in my local vm? what is the better way?

2)can I use the same c#(SharePoint server object model) in the old solution?

3)What are the other challenges involved ?

thanks 

---

Like Cricket