He stated that If her intent was to make an "offer to buy your house for cash" and the truth was that she planned to wholesale it off to someone else, the realtor might catch this, and if illegal, might be inclined to turn her in to the local agency that controls.

I don't want to lose coverage and peace of mind over a few bucks a month, but am wondering if anyone has any other suggestions on possible agencies that offer better rates for real estate investors?

Theres a couple of certification agencies that are national. irem.org and there's a swecond that escapes me.

This may be eligibale for agency loans which can go up to 80% LTV.   

(I'm senior management for a life insurance agency, transitioning to LA).

In other words, if the tenant moved out April 20th without paying any rent or cleaning the unit, you could submit all the documentation to a collections agency and let them go after it.

Knowing a bit about the KC area (I'm just South of you in SGF) I know that your ARV isn't going to be $1,250,000 or greater so agency-type loans are off of the table. 

The housing agency is charging him pretty heavy cancellation fees unless he can find a replacement.

Most brokers have a referral agency that is separate, but works with their primary brokerage.

For example, if you are doing an agency deal then net worth equal to loan amount or greater is a requirement.