There's nothing wrong with taking on a modest fixer-upper in the beginning and taking on more challenging ones as you become more experienced. 

Looking to invest in that market so would love to connect with experienced professionals.

Can anyone recommend an experienced contractor who is 1) willing to do a walk through to provide rehab/repair estimates and 2) licensed and insured.

Anyone in TX experiencing the same thing?  

Insurance is your first line of defense, but only an entity like an LLC, or better yet, a network of entities and trusts assembled by an experienced asset protection attorney, can truly eliminate the threat of a lawsuit.I also discussed this on the BP podcast some time ago, might be worth a listen.

How have some of the experienced people on the forum handled similar situation?

There is a lot to learn, you have to avoid prairie soil, you'll want to stay away from the Coliseum  Plume  (an area that experienced soil contamination) as well as sections of town that have a lot of violence but look like cheap deals (so many out of state investors get really burned). 

Since this was an "arm's length" deal and the owner was experiencing some financial issues of his own, I add value to the deal by keeping continuous open communication and essentially, giving him some earnest money to help him through the process.

More experienced investors will have access to amazing loan products that newbies just won't get.

This is inevitably going to cut into the bottom line, but usuing an experienced project manager for your first project is going to teach you valuable lessons instead of having to learn the hard way.