However, after 37 years in the oil and gas industry, I have reached that stage in life when I would like to do what I want to do, and not what I have to do, enjoy my family more, as well as have the freedom to leave a job, and start doing something different.There are different ways to invest in Real Estate, and I have to learn what better fits me at this time in my life and my finances.

I suggest you do what fits you best in order to succeed maximally.

But, this doesn't seem to fit the typical wholesale situation either (buyers aren't compelled to buy that one property out of some external condition).So, it's still not clear to me that buying at $X and selling at $Y is against the law, even for a mark-up of 10%, 20% or more. 

Logan, My Man,Every deal is a personal one, and it sounds like you are fine because, this deal fits YOUR parameters.Not someone else's.

That fits the situation!

Rent prices in the springs aren't great for supporting cash flow,  but those other two options fit the fast moving sfh market.  

There is no one size fits all solution.

On the surface, it seems like an excellent way for our own rent money to build equity in the property over time, and then provide us a nice passive income for many years as well.Any help is much appreciated. 

Credit is based on a multitude of variables and you just might fit in the bucket of people whose credit can be "repaired" or "restored". 

Excellent job on your credit score and your starting to save as well.Don't shortchange your 401k at work too quickly.