If anyone else has the same problem, I'll be happy to help out.
Once the genesis block is mined and the block hash < target works out, that is the proof of work is done, the coinbase transaction is done and you reward yourself with coins. The software adds the info to your wallet. When you keep mining and confirming blocks, you can send coins between your nodes and watch them get confirmed and the coin maturity come about after X number of more blocks.
You don't really need a VPS as a node, you can use machines on your local network, and get them to connect to each other. Prerequisite would be understanding any firewall rules you have configured. Open up your P2P port for the local network.