Build a desktop instead and use high quality parts. Laptops or pre built desktops are typically loaded up with cheap components. If you're going to spend the money, you might as well get something good.
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Is this going to be your first venture into computer audio? If so, a laptop is ok as it's all in one, simple, and not expensive. You can decide later if going nuts makes sense to you.
This question has come up often and I've gone into lengthy answers before. Please search them in this forum.
In a nutshell: a laptop is far from an ideal server, but it's a practical first step. I did the same, BTW. I'm assuming your DAC has asynch USB? That's very important.
Initially you can rip into your laptop hard drive.
1) Eventually you can get a NAS or an external drive, but your goal is to avoid using USB for DAC and accessing music files simultaneously.
2) Look into dBpoweramp for ripping, and the Guide to Ripping CDs at computeraudiophile.com.
3) Eventually, change your operating system to Windows Server 2012, add AudioPhil's Optimizer, run WS2012 in core mode. Big impact!!
4) A SSD in the laptop would be great, and only used for storing operating system, and playback software (such as JRiver). So a small drive is all you need. The smallest available is already huge for this. If the original laptop has HDD, consider eventually replacing it by SSD.
On the other hand, a laptop doesn't allow to optimize the hardware. Sounds daunting and expensive, but doesn't need to be. Look into the C.A.P.S. 3 and 4 over at computeraudiophile.com especially the simpler ones. You can buy them preassembled. But I do recommend this as a second step after the laptop.
BTW, if I'm coming across as a computer guy - I'm not at all!! The first computer I ever built, or modified, for that matter, is my current computer server. Built a year ago and very similar to the latest CAPS 4...I don't know the model...the most powerful one. I had never installed an operating system before either. But I did and it is not as difficult as I thought it would be.
I hope this helps. Please search the previous posts.