He is probably referring to SEO ranking penalties.
If you get penalized by google or get banned by AdWords, etc. It's almost always better to leave the project and go for a new one. It's rarely appropriate to invest your time into rebuilding such websites
I completely agree with the rest of the answers. There is simply not enough data provided for even rough estimations.
With these specs you could host over 10 very simple websites with no SQL and almost no CSS.
At the same time, you might not be able to host even a single resource-heavy...
This dark theme is giving me flashbacks... It's like navigating via old school Linux console!
Anyways, I'm a long time (6 years) SEO enthusiast with a web hosting background. I hope to share some of my experiences with you, and perhaps learn something new in the process.