How would YOU approach this deal? Or would you?

[Katrina P.]

An agent that I'm working with, told me he has a short sale listed that is a "good deal". Here are some of the specs:

*On the market 91 days
*3 bdrm/2 baths townhome
*Price was reduced from $199k to $175k to $169k
*Agent has not sent me comps yet, but on redfin.com, I'm seeing Nearby similar sales in last six months ranging from $114-$259k (one was sold for $114k, one for $160k and one for $170k; all others were > $200k, which were 7). I'm also seeing currently active similar sales ranging from $214-250k. Without having sent me the comps yet, the Agent "said" that the comps are around $220-$230 in the area. So if he's correct and truthful, there's a profit margin there.
*Property is in move-in condition
*Property is vacant (which is weird, right? Why wouldn't the owner stay rent-free while he figures out what's going to happen w/the property?)

Here are my thoughts:

*Even though I'm inexperienced, I'd like to jump in and get my feet wet, and this may possibly be a good deal.
*I'd like to use transactional funding to flip the property for a small profit - not looking to make a killing, obviously.

So my questions are:

*How should I pursue this property, if at all?
*The Listing Agent said that he sends the offer into the bank and does the negotiations. Although, I've read on here that isn't good. Can anyone tell me why I shouldn't let him do the negotiations?
*Should I just submit an offer through the Agent (since I have no experience under my belt), or tell him I'd like to work this transaction on my own (ensuring him he will still make his commission, of course), dealing directly with the owner, and allowing my negotiator to deal directly with the bank? Of course my issue with this approach is how do I develop the "trust" from him to "hand over" his client to me to work the short sale?

Obviously I need a lot of help and asked a lot of questions. However, please just provide any help possible.

Thanks in advance!
Katrina