I am confident I can get the property under contract low enough to make a healthy profit, but I have concerns about financing the deal, even with hard money.Here is a rough break down.ARV 200 - 210k - desirable neighborhood.

I desire to spend a lot of time with him and a regular 9-5 job gets in the way of that.

But I'm clueless on materials, paint colors, most desireable flooring. 

I desire to know the proper steps to begin my journey in real estate investing with the least hardships any suggestions?

Begin with the flaming desire to be of service to this homeowner.

Once I got my license and had living reserves, I quit my job and went out on my own. 7.) learned the market I was in by learning about the rental market and was able to determine what was desirable and what wasn't 8.)

This is not to say that the zip codes you mentioned don't have demand for lots.  78207 is seeing more infill development than the other two zip codes, and 78228 is becoming more and more desirable, especially if they are larger lots.  

Should I stay away because it's less desirable than and SFR?

Next up would be zoning and whether your individuals or groups in your locale will throw a fit regarding your desired development plans.

Non-distressed homeowners have been sitting on their homes, even though they had a desire to sell, to wait for market recovery.