Best practice for most users is a NAS, and give LE access to it. For those users LE isn't stable enough to be an always-on server.
I've switched to DB managed library, everything went smooth.
A centralized database is meant to be used when more than one Kodi device is present in your household.
If that is not the case, why bother?
If you add local files, they need to be accessed via a network protocol, as the full path to each video will be stored in the Kodi video database. When another Kodi client needs to access it, it'll need to work via the same network connection. Be it via SMB or some other network protocol.
99% of the stuff is hosted on my NAS.
However my NAS is located in a alley where it is inconvenience to connect external drives sometimes, this is where I need this work around.
So I've changed the path to smb://<external ip> of the server, anyone can access it including the server itself 
