If you already have access to $40K for a downpayment, I would start with that and leave your property alone. 

I'm looking for advice and or precautions.Some questions and concerns I have are:Collateral?

I am not comfortable buying out of state with zero experience as well as when my Family and I leave Hawaii to move back home to TX it will be our first house for our family!

We are not planning to go down the sell by owner path again, so that leaves us with two choices. 1.

I had to leave work immediately...

Is this a valid concern at all?

I would certainly take a hard look at the structure and look for possible areas that have been overlooked.As for your other concern, $2200/ mo is very suspect. 

I actually ended up just leaving everything because I got lucky.I guess if I was intending on keeping this longer I'd probably do something other than carpet, but I rather put down new flooring as I go to sell it vs now to get an extra 100-200 mo.. 

Which is another concern of traveling i plan self managing property.

What should I be aware concerning the contract itself?