However, in this case, since he is a dealer - these installments are subject to SE tax, offset by business overhead expenses.In other words, if I use 6252, I end up splitting the business between two lines of 1040: zero-income/large-expenses Schedule C and 4797 gain.

It means you need to file/pay state quarterly taxes (B&O Taxes) on that Income and report a Schedule C business now that you pay SE tax on vs. no SE tax if that income would have stayed on Sch E as rental income. 

This would not be an investment, per se, but more of a homestead.

I'm looking at single family homes in ABQ NW or Rio Ranch SE retailing (is that the right term) at about $175K.

It feels like SE is the only place where deals can be found...

SE Tax, is it mandatory to take?

I'm brand new to real estate, because I was always told how difficult it is to buy a house, let alone invest in a property, but now I have learned that is all simply not true (I do know it is not easy, per se, but it is attainable with some hard work and diligence!)

His group does property management in the SE Valley. 

I'm looking for DC licensed contractor with 203k experience to assist with a SE DC Building that needs various work.

That is more of the full-time investor crowd, per se.