A typical Hialeah condo ask $160k and can be rentrd by $1,500 month but I was told that most of them do not homd reserve.

Your purchasing at trustee sale may or may not give you the right to redeem; that is something you should talk with an experienced local real estate attorney about since it typically involves a lot of state-specific law. 

I wouldn't assume that this experienced investor could also just get a regular commercial loan at typical rates 10% down and 5% interest rate. assuming again they have proven to this lender in the past that they are extremely low risk?

Is it typical for the seller or his agent to require proof of funds just to look at the property.

This is likely an illegal fourplex, with only one or two meters (street pic looks like a typical shotgun duplex). 

A commercial loan is typically 70% LTV and with a $70,000 appraisal you would be able to refinance at $49,000 on each property.

Typically 680+.

Hi Ashley,Typical homeowners insurance policies won't cover fire, vandalism, liability or other types of claims on an unoccupied or vacant property. ...

They are typically called Non-QM loans.

Usually when someone has put in writing to you that they have moved out, turned in their keys and rent has not been paid, it is typically now in your possession.