Now it's starting to get weird.Although this is a lead my gut reaction is to steer-clear of this seller.

Very critically, listing agents HATE 203k and will steer their seller client towards the investor putting 20% down with a hard money loan that can close in 10 days, even if that isn't the highest offer.

Check with a local company, they should be able to steer you in the right direction.

@Jason L. in order to steer you to a good PM and away from a bad one, let us know what sort of properties you are looking to invest in.

I'm not sure if this would be considered "good" or if I should steer clear from areas that historically don't have a large amount of rentals available.  

Any neighbourhoods to steer clear of?

If you're working with a real estate agent they might have some idea how to exit the contract based on experience and this might help steer you in the right direction but they are not lawyers and cannot advise.I would suggest bringing on someone with a skillset to compliment your own for future flips.

Feel free to PM me: I don't mind looking at your specifics and giving you my perspective on your specific situation and I might be able to steer you in the right direction. 

They should be able to steer you in the correct direction.

I have never once even checked what the split was when searching the MLS for a home for my buyers....let alone steer them away if it is .5% too low.