Since posting, I've talked to my lender, who mentioned additional legal hurdles I'd like feedback on, provided you're brave enough to give some.1.

Most look to attract accredited investors so that is the main hurdle.  

If you think I am too unrealistic and unreasonable, tell me so I can learn my lesson. 

I can afford to pay the monthly mortgage on the place and do the necessary rehab work, just don't have the capital to shell out $108K + rehab costs.They would probably be okay with this, just would like to know if there are any challenges/hurdles i will face?

She sounds ridiculously unreasonable.

Getting the credit history established was the biggest hurdle for me, and a quick trip to the bank can tell you where you sit on the spectrum and what you can afford. 

Those folks will obviously know about all the CFPB compliance hurdles that come up with small loans.If needed, call up listing agents that have properties listed in that price range (in that zip code above), and say "hey Agent Sally, I noticed your listing on 123 Main St, but my lender says they don't lend that low... do you know anyone that will?"

I doubt there are 3 comps for this property type with this zoning so that will be a hurdle.

I would like to exploit the BRRR strategy in order to overcome this hurdle.

Its not unreasonable to want to go to another state.