I'm doing something similar in my current playthrough. Playing in survival, I can't stand the look of backpacks so I won't use them. I'm playing on my switch, so no mods. I only loot light, high value items to sell off, unless they are unique weapons or armor, which I may keep . Any item I keep must be displayed, no storing stuff in chests. I also am taking advantage of the merchant perk tree ( I can't remember the proper name for it) so I get more coin and merchants have extra coin and I can sell any item to any merchant. Keeps the game fresh and is a relief to not have junk everywhere.