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So, is there a limit to town items you can buy at one time?
Is it one item per turn or can you buy up to your 3 item limit in one turn?

You can buy as many as your limit in one turn. The rulebook mentions specifically that that's a repeatable encounter-the-space.

And it's definitly more effective to go to the shop with lot of cash ( well.. i mean... investigation points ) and buy all that you need in one shot.
The only times where i'm running quickly toward the shop is if i really want a specific item, which is limited. But it really only concern the non cooperative games...

I usually visit the shop early and visit often. That way I get the upgrades as soon as I can afford them, and I can dispatch the minions easier earlier.