Could be a totally legit deal but, from the limited information you gave, seems a bit fishy...

Would a HML be my best bet on this property .......... as i may have a better chance for being approved to do most of the repairs , as well as Having the best chance of getting a loan for the property?

So I’m limited on options.

We have very limited experience, so we're eager to get into the forums and start learning from all of you!

I know this limits my situation a lot.

Your best bet is to have your agent contact the listing broker's employing broker and let them know the situation and request to be present when your offer is presented. 

Any amounts would be taxable distributions and likely subject to penalty.You can use your IRA for investing but the funds have to remain retirement funds and the normal strategies of growing the investments are limited a bit as explained above.You haven't asked this yet but I feel you may - you can't borrow from your IRA and generally, you can't invest with your IRA for the purchase of an investment property.

Stay clear of the sheriff's auction unless you are an experienced investorIn this case, the sheriff's auction was packed as I have never seen it and the bidding on my interest went way over my predetermined limit. 

Your expenses and depreciation are limited to your income on that property. 

It sounds like you are getting limited showings in a hot market.