And here's my hiawatha.conf file (note this is my first time ever server setup, soatm I just leaved lot  commented out, don't know yet what will be final setup. Also this is intentionally LAN usage atm, no available at internet yet). Folder permissions are setted as the guide linked at first post.
# Hiawatha main configuration file
#
# VARIABLES
# With 'set', you can declare a variable. Make sure the name of the
# variable doesn't conflict with any of the configuration options.
# The variables are case-sensitive and cannot be redeclared.
#
#set LOCALHOST = 127.0.0.0/8
# GENERAL SETTINGS
#
ServerId = www-data
ConnectionsTotal = 1000
ConnectionsPerIP = 25
SystemLogfile = /var/log/hiawatha/system.log
GarbageLogfile = /var/log/hiawatha/garbage.log
ExploitLogfile = /var/log/hiawatha/exloit.log
ThreadKillRate = 3
# BINDING SETTINGS
# A binding is where a client can connect to.
#
Binding {
        Port = 80
}
#
Binding {
        Port = 203
        BindingID = port_203
}
#Binding {
#       TLScertFile = tls/hiawatha.pem
#       Interface = 127.0.0.1
#       MaxRequestSize = 2048
#       TimeForRequest = 30
#}
# BANNING SETTINGS
# Deny service to clients who misbehave.
#
#
BanOnGarbage = 300
BanOnMaxPerIP = 60
BanOnMaxReqSize = 300
KickOnBan = yes
RebanDuringBan = yes
# COMMON GATEWAY INTERFACE (CGI) SETTINGS
# These settings can be used to run CGI applications.
#
#CGIhandler = /usr/bin/perl:pl
CGIhandler = /usr/bin/php-cgi:php
#CGIhandler = /usr/bin/python:py
#CGIhandler = /usr/bin/ruby:rb
#CGIhandler = /usr/bin/ssi-cgi:shtml
#CGIextension = cgi
#
FastCGIserver {
        FastCGIid = PHP7
        ConnectTo = /run/php/php7.0-fpm.sock
        Extension = php
}
# URL TOOLKIT
# This URL toolkit rule was made for the Banshee PHP framework,
# which can be downloaded from http://www.banshee-php.org/
#
UrlToolkit {
        ToolkitID = wordpress
        RequestURI exists Return
        Match ^/(css|files|fonts|images|js)($|/) Return
        Match ^/(favicon.ico|robots.txt)$ Return
        Match [^?]*(\?.*)? Rewrite /index.php$1
}
# DIRECTORY SETTINGS
# You can specify some settings per directory.
#
Directory {
        DirectoryID = assets
        Path = /
        Extensions = css, js, png, webp, jpg, pdf, woff, woff2
        ExpirePeriod = 2 weeks, public
}
# DEFAULT WEBSITE
# It is wise to use your IP address as the hostname of the default website
# and give it a blank webpage. By doing so, automated webscanners won't find
# your possible vulnerable website.
#
Hostname = 127.0.0.1
WebsiteRoot = /var/www/hiawatha
StartFile = index.html
AccessLogfile = /var/log/hiawatha/access.log
ErrorLogfile = /var/log/hiawatha/error.log
# VIRTUAL HOSTS
# Use a VirtualHost section for each website you want to host.
#
VirtualHost {
        Hostname = 192.168.1.203
        WebsiteRoot = /var/www/wordpress
        RequiredBinding = port_203
        StartFile = index.php
        AccessLogfile = /var/www/wordpress/logs/access.log
        ErrorLogfile = /var/www/wordpress/logs/error.log
        TimeForCGI = 5
        UseFastCGI = PHP7
        UseToolkit = wordpress
        UseDirectory = assets
        ShowIndex = no
        TimeForCGI = 10
        UseFastCGI = PHP7
        CustomHeader = Vary: Accept-Encoding
        CustomHeader = X-Frame-Options: sameorigin
        PreventXSS = yes
        PreventCSRF = yes
        PreventSQLi = yes
}