Older senior areas the bottom units are usually more desirable, other people prefer living in the top for the views (if any) and the fact they don't have to listen to people walking on their ceiling. 

The neighborhood is very desirable but this house is on a small side street and it is nothing fancy.

This would be my first property purchase other than my own home, and though I had planned on getting started in real estate investing through maybe land flipping or buy and hold SFH, this seems like a good way to combine a desire for some shop space with potential for a little extra income.

I can understand the desire to be sympathetic, helping people and all that. 

you know HML   or they do some lending to close in contacts would be a better use of their time and money I thinkor if they really have a strong desire for this process they partner with you guys if you allow partners.. or invest in a fund with a very experienced fund manager.  

Overpriced, something wrong with property, less desirable area.

Its a very desirable area and I could picture taking over the whole building in the near future when I have the need for a staff to go with my real estate business as I acquire more units.In the mean time what would be the best use so that I can use a small section of the building and rent the rest?

So you would need to occupy one of the units for at least 12 months (which is the current requirement).Once you have satisfied the 12 month occupancy requirement, you can move out and convert it to a rental if you desire to do so. 

Is this a desirable area for buyers?

All it takes is a few hundred dollars and an aggressive first year attorney to make your life a living hell if a seller is harmed and they can prove you had neither the ability or desire to perform under the contract.