A couple of questions though...
How much of the work do you do yourself & how much do you hire people in to do? (I don't mean this in any accusing way, I'm purely interested in where you draw the line in what you're willing/capable of doing) (obviously there's some stuff you'll have to get someone in to do e.g. gas work, but what about the rest?
You'll be surprised how much you can do yourself, the only areas I avoided was water, gas and electrical rewire because I wanted the utilities safe and to the latest regulations. The only other skilled trades I wasn't comfortable with is roofing and plastering because I wanted the walls perfect, any imperfections would play on me lol
Do you live in the house during the renovations? (If I do end up doing the same, I would probably have to live out of 1 room at a time or something, whilst the rest is being done, as I don't think it would be either possible, or practical for me to stay elsewhere)
No I've been living close by, I will probably move in once the plumbing has been done and the heating is on.
If you are planning on getting an old house, I doubt this will be feasible for health reasons - the dust created from the old lath and plaster is so bad and spreads throughout the house. I wouldn't recommend living in that, you'll be constantly spitting out black gunk from the back of your throat. Then you have the issue of heating, toilet, electrics... an electrical rewire normally takes a couple of days with a good sparky and a plumber will normally take 3-4 at a push to get everything back up and running depending on how much work is needed.
Personally focus on these three before moving in, quickly gut the property and get the main utilities reinstalled.
Do you seal off the room(s) you're living in whilst you do the work (to limit dust ingress etc?)
It sounds good to seal off rooms but in reality I found it safer to keep everything open, the dust from the plaster is so fine and horrible even the dust masks were failing... I used to open all the doors, windows and get fans on for circulation. Rip up the carpets FIRST, much easier to sweep up the dust and mess.
I only time I've sealed a room was the bathroom during the sandblasting, the pressure and grit is known to break windows and damage plaster walls so I bought a roll of black plastic sheeting (similar to a damp proof membrane but cheaper). A lot of dust and grit still managed to get through mind!