Well, you can begin with honesty. This man NEEDS to know that you are not interested in having him in your life in a romantic fashion. Once he knows that, he can clearly figure out that you are not going to be living with him. It is not fair to allow him to think you are in a relationship with him, so for crying out loud, tell him as soon as possible. He deserves to know so he can shift gears into reverse as the relationship is not going forward.
Do assure him that you want him in his daughter's life and then work out a reasonable schedule. Because he is living so far away, and money is tight, I think you will probably need to reassess the idea of him staying under your roof so he can connect with his child. But, this does not mean he gets to share your bed, so make that clear to him NOW.
Now, it is time to forgive yourself for making a huge mistake by being with a man that you are not in love with and especially for getting pregnant with his baby. Of course children are innocent, so the child should not suffer without a loving father, if he sticks around to co-parent.
So, pull up your maternity panties and woman-up to tell him how you feel and the rules he must follow if and when he comes to spend time with his baby girl.