You can, if you are running something like ESXi 5/6/7 or ProxMox. I wouldn't even attempt it in a VM on your daily use computer though. Make sure you pass your NIC's through straight to the firewall, otherwise, vlans can become a nightmare if you plan on using those.
Just don't use it on your daily PC, because you will mess up all the things. For a LAN firewall, I would try vcloud suites, I thinks this is the best choice in your case, because I am not sure that DHCP will work as you expect. To make this work smoothly, you also need a lot of software to maintain this process continuously, and this is at least one powerful computer, which will be connected to the LAN all the time. It might be a bit expensive, but this is the best set up in my opinion.