The price actually sounds too good to be true. Worry about hosts whose prices are too low, such as GoDaddy. Many of these hosts are in the business of "upselling". The first few months will run great, but slowly performance will begin to degrade... then when you complain, they will tell you "you need to buy the next level up".
Also, be aware of "managed" versus "un-managed" servers. In a managed server, its like a shared server where the host handles everything. If you have an issue, you send in a support ticket, and they fix it. With an un-managed server, you're responsible for everything. They expect you to know how to run a server.