@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.

I have built up thousands of retail and multifamily contacts over the years to search for properties for my clients.Some commercial brokerages like to do volume and work for peanuts.

I'm sure we've all seen them in our towns, large retail strip centers, the facades look old and dated, the center is 50% occupied at best.  

You paid retail price for this house and it does not cash flow.

Not knowing anything about the Birmingham market or any retail prices, it sounds like you have a potential good deal here (assuming the price is bid up to X% more) and is definitely worth you setting your max price and making your bid at the auction.

That was a huge impact on the economy (retail, construction, services, etc.)  

Walk area on google street view. look for bars on windows, what type of retail? 

(He had received over 10 grands commission acting the buyer’s agent though.)Though there are improvement could be done to the property (install an additional bathroom, update kitchens, add compressor for A/C), given we bought it at a retail price, probably it’s not an option to make these updates and sell it.Any advice would be greatly appreciated!

It will pull 700 a month rent or more if used as an vacation rental and retail value is 70+K.