If i was in your shoes, I would call the listing agent and tell them you have a legal contract  to purchase with the seller and to change the property from "Active" to "Pending" in MLS.  

@Corey Beckwith Account Closed  Thank you everyone for their input on this I have my new offer in with 25% EM (all I am comfortable with at this point).

So my wife and I make more that enough to live comfortably but want to fast track our residual income. 

That was the first time I felt comfortable with it because of the added complexities when figuring out what the houses will re-sale for, plus the fact the price points are higher (though price points vary based on where in DC you are, of course).So if I were you, I'd check out Southern MD

$500-700 per month negative cash flow is a bit beyond my comfort level.

I think a few others above have said this before, but If you are concerned enough about having a questionable/sketchy tenant you should look elsewhere and find someone more qualified and you're more comfortable with.

Not being educated about a market and rehab enough to be comfortable taking the deal.

She recommends to just get enough insurance that makes you comfortable.

And as a tenant, she has the right to peaceful use of the property.Put yourself in her shoes...

Just an example, I offered 45k on a property last month (and I was stretching my comfort zone on it).