Unfortunately, I cannot connect via Ethernet cable in my setup (computer does not have ethernet port and router ethernet is already being used).
I just found a solution. I un-blacklisted the files to bring the internal wifi back up. I then setup the internal wifi (wlan0) to connect to my router/internet, and the external wifi (wlan1) to connect with my computer at 10.0.0.2.
It seems that everything works now, and I only had to make the following changes:
just changed first line to:
If you think there are any problems with using both the internal and external WiFi please let me know.
Thanks for the help.