If you are familiar with Memphis and some of the suburb areas, Germantown is one of the top areas and is mostly a retail market. 

The property is in a distressed situation and would definitely need a remodel to sell for retail value (we might have to move some walls around to make the property more desirable). the property is around 60 years old with 995 sq. and around 400 sq unpermited on top of that and there is a mortgage of around 255k on it.

Maybe it isn't much of a distinction I guess... because either way I'm paying retail for an out of state rental that someone else puts a tenant in.Which is turnkey?

There are plenty of suburbs in Cleveland with great commercial and retail establishments, awesome restaurants and amazing school districts people love to rent in.

Why not rent it out for one year, then when the lease expires, get the property in mint condition and sell it to a retail buyer? 

And regarding the property itself, if that was truly that great of a deal, wouldn't the seller also know it, or the seller get a realtor to tell them that, or a retail buyer see the listing and know that.

Hey folks,Closing on a retail space at the end of September and have interest in renters who want the space for a two-three year rental commitment, but not until December...that means two months of vacancy in a hot downtown retail space.

., so far below fair market price at retail that the repairs can be covered as well as your profit and the flipper's profit in its eventual retail sale -- or 'buy-and-hold-to-rent-out'er's profit before they would expect to get it rented -- plus the title search, closing, and any tax costs related to your purchase from the seller (usually split somehow) - and finally, the title search, closing, and any tax cost split with whoever buys it from you.Now, that someone could be you (you do trust you and your repair-estimate abilities, don't you?)

@Lamont B. any credible HML should be able to provide you with a loan pre-qualification letter to submit with your offer, which is what any other conventional lender would provide to an owner occupant/retail buyer.

I decided against it due to the insurance, and the fear of a vacancy in the retail section.