I am concerned that I could be taking too much risk by investing in a currently undesirable area versus spending more to enter the market in a more expensive area nearby that is currently thriving.3.

My goal is for this house to be paid for over the long term, refinance to pull money out, and do it again in another nearby, yet different market (BRRR).

If you live nearby, I'd say go for it.

Crossville is a small to mid size city and growing with many retirement communities/cities nearby.

I was thinking that I might stop by a CapSource office nearby where I could go in person and request detailed information about private money, even though my investment would be in Texas. 

Finally, even though Indianapolis University is small, it's always good to have a great institution nearby.

Yes there will be surround & trim/ etc finishing required, but it's nothing special or extra challenging.get a few other bids before you decide replacement is "too expensive"  - nothing especially challenging about the surround/walls, trim, tile, finishing, or nearby side walls etc getting done at the same time as a tub.

It doesn't have the character of most of the others nearby.

The downside of selling will also be that our expenses will go up by buying a new home as well, and we aren't very high income earners (we both make a little over $100k/year combined)We also own a few small rental properties in smaller towns nearby in TX, so the rental game isn't new to us!

Since I live out of state and there are no nearby managing companies, I decided to sell the home.