Yeah I notice I was confusing the chips, about that I am running 10 using a 4790k. VMs doenst get exclusive use of the cores, so a single physical core will do the work for multiple VMs despite how u setup the VMs.
Still I had thought using a ton of cores would lead to cheaper and more effective virtual machines. I've never tested it so I'm not really sure of anything. I think the second build I posted will be more effective than the first from a price standpoint, it's even possible to achieve up to 64 cores with those AMD processors. and remain close to the $1k budget.