I've been through many levels of hardware in sim racing and have had both triple 27" monitors and both the Rift CV1 and the Rift S. The big question for VR is if you're prone to motion sickness. If you are, it's pretty much a non-starter and you should get tripes or a large ultrawide monitor. If you can tolerate VR, then it's definitely the way to go. The Rift S is fantastic and inexpensive. I bought it thinking I would return it and get a Valve Index, but it's plenty good and I like that there are no base stations to deal with.
My overall recommendation for sim hardware is this: if you don't have experience and want to try it on a budget, buy some inexpensive stuff like a Logitech G27 and clamp it to your desk. The mid-grade stuff is definitely a step up and much better, but the upper end hardware is so much better that I'd advise to go straight to it if you think you will use it and can afford it. The most important piece, IMO, is the chassis. You want rigidity, and many of the budget options have far too much flex in them. I strongly recommend 80/20 aluminum. It's expensive, but not compared to cars, and it's a buy once, cry once situation.
For a wheel, nothing beats a direct drive wheel. So many of my spins in the early days for me were just due to not having enough detail in the wheel feedback. Of course, there are plenty of very fast racers using budget hardware, but my goal with the sim is to...simulate real life. So the better the information coming out, the better that practice transfers to the real car.
Pedals are another very important but often overlooked piece of sim racing kit. You want something with a load cell in the brake. Realize the pedals will never feel like real pedals, unfortunately, but buying quality here makes a big difference.
Eventually I added 4 transducer speakers to each corner of the rig, which simulate vibrations from each wheel. It makes a big difference in immersion. The one thing we don't have the ability to do is simulate g forces, unfortunately. Even motion rigs don't really do it justice, so I've just added everything I can on a medium sized budget to make it as close as I can.
My specs are:
i7 Skylake (a couple generations old)
GeForce GTX 1080
4Play HD black 8020 chassis
Corbeau LG1 seat
SimuCUBE small mige
SRM Wheel Base side Fanatec conversion kit
Fanatec Clubsport steering wheel
Fanatec Clubsport shifter
Fanatec V3 Inverted pedals
2x Dayton Audio BSA-200 amp
4x Aura Pro bass shakers