Seller claiming "not enough money to close"

[Marty Sheehan]

I'm in a bit of a pickle on closing right now.  

I was under contract for a duplex for $165K "as-is, where-is" but on the home inspection, we discovered a leaking pipe in the bathroom which was flooding the bathroom/adjacent bedroom when the shower was running.  The inspector estimated it could cost anywhere from 2k-10k to fix depending on the moisture damage.  With this new info, my agent changed the PICRA to include repairing all moisture damage, including but not limited to the bathroom the leak was in and then gave them the option to just cover $5k of the closing costs, thus allowing me to take care of the issue myself.  I liked the latter better since I would have control over the issue and would know it was taken care of properly.  

They got back to me the same day through their agent to mine saying they would take the "$5k of closing costs" option but had to check their accounts to make sure they had enough cash to do so.  Since then a week went by with my agent calling theirs every day and going straight o voicemail, being told she had phone problems, and other excuses.  Today, my agent was told that the seller is already bringing $2,356 to the table at closing (they bought it in 2005 for $199K) and simply doesn't have enough money to cover the $5k of closing costs on top of this.  

This is more of the seller's problem, but I want this deal to go through so I can get in the game.  The numbers are mediocre to start and taking on a project with the potential to cost $10K without getting any help from the seller would be too much of a risk for me, I think.

Any of you veteran hustlers have ideas on how to help the seller pony up with the ~$5k or a way for me to work it into the deal for a delayed payment or something that will make this deal work?       

Numbers below: Cap rate should read ~6%. ARV would be around $180K.