So if I can follow this model and achieve similar-ish returns with limited amounts of work, I require a greater return than that from real estate.

You can reinvest into sponsored investments or funds that don't require you to go out and personally borrow money at today's rates.As a 1031 accommodator, I'm clearly a fan of exchanging. 

You should put the property under an LLC Your third question is referring to the short term rental loophole, which requires 100 hours and more then anyone else of "material participation".

The physical beauty here is unmatched.I know the idea of living mortgage-free is exciting, but it's just not doable in an area like Colorado Springs (or Denver just to the north).

You could do that, but it is not required and the costs likely outweigh any benefits. 

Would be interested in the real estate side of things of course but I know there are other requirements connected with the medical side of it.

We require a 550+ credit score as well as a current job paystub or a co-signer who meets these requirements.

Best to contact a qualified 1031 intermediary for exact rental requirements on the named (new) exchange property.

Some counties OR cities now have additional registration requirements.  

Actively buying rental properties requires a side hustle business approach.