A house that has survived 100 years of neglect has probably got good bones, while modern construction is often all about slapping stuff together as quickly and cheaply as possible in order to maximize profit for the developer.

If I was coaching my younger self, this is what I would recommend: Read Brandon Turner's book on Rental Property Investing https://www.amazon.com/Book-Rental-Property-Investing-Passive-ebook/dp/B018UTI2DOListening to the BP Real Estate podcast https://www.biggerpockets.com/podcastListening to the BP money podcast https://www.biggerpockets.com/moneyshowAttend your local REIA meetings to networkStart analyzing deals to get practiceEngage more on the BP forumsAll the best!

After much reading and self teaching, we decided real estate would be the best avenue for investment.

Is it unrealistic to think I can self manage the property?

Honestly I don't see a huge issue with starting your investing career in a different market if you are able to develop sufficient systems.

A self help eviction is very possible with some patience, good luck!

The neighborhood is going through a massive development phase right now.

Should be even if you self manage to start 

Can you transfer your 401k into a self-directed IRA or solo401k? 

If you later decide to self insure the Improvements (parts of the building you own based on the bylaws) you can at least keep the Liability going that way.