Also, on a complete side note, is it a red flag if a property in the north-east doesn't have a heating system for a period of time in the winter? 

The older gentleman is a doctor and his credit and background check come back great no red flags there.

100% agree with @John Warren make sure you aren't in a war zone and those prices for a newer built building are a red flag.

(That smiling picture of you with that pulsating bruised red nipple will get the attention so don't worry.)

Crews might be rolling out a red carpet in front of the Dolby Theatre while crowds of people snap photos from the top deck of a passing tour bus.

When you talked to them, were there any red flags?

The property in question is outlined in red. 62P4

Close to Red Rock, the outdoor mall, good schools etc.

I would continue to educate and build contacts in your investment area and get your credit up just a bit more.A red flag for me would be your 1 out of 10 contacts for the area you wish to invest in.

It’s not unusual just because you’re not familiar with it.Wayne U beat me to it.. this is just local custom and the OP did not explain it well in the beginning.. letter of intent is very common although not so common in today's market that is red hot in some areas.. while your letter of intent goes out someone is beating you to the punch with an actual contract..