There was also a thread on my city's neighborhood facebook page (another great resource) recently that suggested a family of 4 could expect to use $60-$75 of water.

I suggest buying a property from MLS & having a PM company manage it for you.

if you decide to go ahead I would suggest doing what I did I charged One year upfront and the lease was with the parents of the occupants I had theor security numbers and they were personally responsible for any damages At no limitI first went to a real estate attorney and had him write up he lease to make sure it was all legalWorked perfectly when a group of them did nearly $10,000 worth of damages Mommy and daddy paid up within days of them leaving at the end of the school year. 

All suggestions are welcome.

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.

When you have had a tenant for that long, you will need to do some improvements / upgrades (flooring, perhaps a new bathroom, windows/doors, etc) and you should be proactive about suggesting / planning them.

All advice and suggestions are appreciated.

I have 25k in each but suggest you use them ONLY in emergency situations.

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

Any suggestions from the BP community on what is realistic?