My goal is to eventually gain financial freedom (teachers generally don't have this option if they only teach!)

You might need to consult with an Attorney or CPA to determine your type of company to keep you personally protected, a pre qualification letter from your choice lender, and your primary Team members.  

The language in my contract protects me in a number of ways.

The SEC has effectively taken your investment rights away in the guise of "protecting you".U.

I'm certain this is a good deal but I'm a bit apprehensive because, for 1) its outside of my Houston area Market so overseeing a rehab would be quite difficult 2) With such a large home we would face some financial challenges with doing a complete remodel.

You end up buying, new HVAC, paint, drywall (maybe), electrical fixtures, kitchen cabinets (maybe), flooring, and appliances.The law actually protects the person that follows it.

Am I living in a dreamland thinking I’ll be able to find something with these criteria and the amount I have for down payment that will make any financial sense?

Do not try to do everything yourself.Always do the math analysis and try to look at the subject property before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that hurts   Right after you close on a deal get an insurance policy that will protect you in case of a loss.Just do what is average for the neighberhood.  

The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

However, I went to the first meeting and the main speaker was an out-of-town guy giving a super high-pressure sales job for some MLM program called "Financial Education Services Protection", which didn't actually have anything to do with real estate, other than he was pitching us to pressure credit challenged prospects into buying this (my opinion) predatory program.