Seller's Unique Request - 5% within 24 hours

[Nick Shuber]

 So this is my first post in the forum's as a member of the BP community.  I'm a first time investor looking to purchase a vacation rental in Cape Coral FL.  My wife and I have run into a situation that is a bit out of my comfort zone so I thought I'd send it out to the forum's for feedback.  We've identified a 3 bed, 2 bath sfh (w/pool) in Cape Coral that we're interested in.  Seller initially listed the property for $243k, reduced to $238k; which is when we made our initial offer ($223k).  The seller's (agent's) response was:

"owner is willing to go to $235k, it's 5% down within 24 hours, a 5 or 7 day inspection...appraisal ordered w/in 10 days business days from effective date."  

We walked away at that point to look for other properties.  No luck for 3 weeks so we revisited this home since it was pretty much exactly what and where we were looking for.  The price is now reduced to $229k and the owner is still asking for 5% down within 24 hours.  That is the portion of the deal I'm concerned about or better put unfamiliar.  My issue with this request is what recourse do I have if I provide 5% upfront if the inspection comes back suspect or have other issues after the fact.  

Has anyone in run into this request before?  If so, can you please educate me on how you responded or if you just went forward with an offer that met your needs instead of the sellers?  It would be nice to have the proverbial 'win win' but the sellers agent won't divulge the sellers need for the upfront payment.  My assumption is he's in a situation where he needs funds quickly and feels this is a last ditch effort.  maybe I'm wrong.  Any and all constructive advice is welcomed.  Thanks for reading and I look forward to learning a bit more from the community!!!