I'd much rather that large hot with 3 creams from McDonalds.My bet (and I reserve the right to be wrong) is that the most important ingredient in a gourmet shop is marketing. 

Very few investors today want to use cash reserve unless there is compelling reason to win over competitors. 

ABQ may not be super easy to develop in due to national parks and reservations but its regulatory climate is much warmer (another good reason to buy there, although the whole Southwestern region is spoiled this way - no idea how good they have it).

if I do an auction can we set a reserve and who would you recommend? 

Also, will a lender balk at refinancing if I used too much of my cash reserves to purchase the house in the first place?

With a occupancy rate that low you will have trouble with a loan unless you do a bridge loan to make up the reserve off the bat.

I am not a CPA, but I read about this intensively to better understand what the rules are and got confirmation by multiple CPA's, including some on BP podcasts

*UPDATE* I contacted him Sunday to confirm Tuesdays walk through.

Overall this should equate to less of your money going into the deal, which allows you to leverage and have more reserves. 3.

I'd want at least 6 months of reserves.