I put some thought into this last month. There are not a lot of consumer grade routers out there that support multiple LANs. Once you get into the business edge router type gear, it starts to become pretty easy. There's a few brands that will do it, and certainly a pfsense appliance on an x86 system with a few network adapters will do it. Running a router on an old computer is getting a bit out of style though...
My solution is really quite shoddy but it satisfies me. I took an old router and set it up with its WAN as a LAN client, and its LAN as an IoT network. The router does not have NAT translation on the LAN interface. It does however perform NAT on the openvpn interface. My new IoT network, which is on its own vlan/ssid/however I split layer 2, runs the packets through the vpn and out onto the Internet in some other network, and in theory never shall the two LANs touch. If the vpn goes down, there is no NAT to leak them out my home ISP directly. Sure, I'm doing double nat, but for my IoT stuff, who cares. It's just dye going in the river, just make it go away from me.
I adopted a recurring cost of 3 bucks for a vpn. But I didn't have to get shiny new gear or run an entire computer. My little way for the sake of sharing. Love to hear any criticism of it since I am still thinking about it quite a bit.