I just went through the same setup with the rails 4 project that I worked on locally, and am now deploying it to a remote server.
You should definitely use some source of version control! I am currently using bitbucket, which was awesome for my setup and workflow, as well as with the added benefit of being free for a private repo.
You're on the right track, my workflow looks like this:
local dev -> commit a bitbucket Then, using capistrano, even though the script runs locally, the actions are still deleted remotely on the server, so it looks like this.
(bitbucket repo) ^ | (local dev) deploy capistrano -> (server) fetches from bitbucket and runs capistrano commands
The first two resources describe in detail the following process: http://robmclarty.com/blog/how-to-deploy-a-rails-4-app-with-git-and-capistrano
http://matteodepalo.imtqy.com/blog/2013/03/07/how-i-migrated-from-heroku-to-digital-ocean-with-chef-and-capistrano/
When you want to get a little more fantasy and automate, I suggest adding something like a chef, which you can use to configure the server itself (so that you can deploy VM or VPS and run several scripts to configure it in a couple of minutes, and not installing all packages manually)
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