You’re getting excellent advice above. I’ll just add my two cents..covering the tile is the safest way to eliminate asbesto. First cover it with floor leveler or some sort of permanent heavy sealer and then the flooring you choose.
Second, after you do the guts of the Reno as has been suggested, checking electrical, plumbing etc. I would prime over all of those bright colors as it has to be done any ways and this will give you a clean light palette to choose your color scheme.
Oh, and when doing your ceiling, you may want to consider pot lights as they are very functional and give the ceiling height.
To keep track of the advice here, you may want to make a list of each of the suggestions and then repost the ones you are going with and ask more questions as needed, like what order to do certain things etc..
congrats on you first home. The folks here will be of great help to you!
Q