Was this some kind of strategy for bumping the previous bidder or just frustrated frenzy over what could have been a stellar deal?

How do you feel about that strategy?  

What's the strategy for these?

The math works a lot better in median priced neighborhoods, but that of course  conflicts with the cash flow centric approach.

@Jeremiah Ellard IVThis appears to be a financial strategy question and not really related to the FHA 203k. 

If you close into a 30 year loan from the get go you will most likely pay a pre payment penalty of 3-5% so that strategy wouldn't make sense.

The book teaches solid “principles” of real estate, finance and law, not a strategy that either doesn’t work now or won’t work well in the future2.

Hi. I am in the process of purchasing a new rental property and expanding on this initiative in next few years. Currently, I own one rental property. Should I create an LLC at this point to protect my personal assets ...

If a deal aligns with your strategy and financial objectives, then it could be a great opportunity regardless of the motivations of the realtor involved.As for advice for a beginner, it sounds like you're already taking proactive steps by planning a trip to scope out neighborhoods and define your buy box area.

A better strategy and use of time would be to actually do a STR :).