We have seen this strategy work well for many clients as long as proper due diligence is performed and the PT rules are understood and followed. 

In the end, you are going to need a little more insight than you’ll gain from this forum to know for sure that they are doing everything properly.

This, right here, is why I got out of Pittsburgh proper.

Hire an attorney to do it properly before you lose everything to bad wording in the contract that you got for free online.

Give proper notice and proceed.

2) If the answer to 1) is Yes, can you advice the seller what's the proper way to do this - contact the agent first to let her know he wants to sell the house himself and wants to be out?

If the infrastructive isn't properly maintained, one major repair could easily eat the small cash flow that may exist. 

I maintain the properties, have any maintenance requests timely and properly performed, didn't raise any rents in 2020 or 2021 due to Covid, but gifts for the tenants? 

I agree with Matthew - real lenders should have a company driven email or at least the proper signature with the company logo and license number.  

I wouldn't touch that deal without contractor support, a proper walkthrough, pictures, and more experience.