make ready before closing with 1031 funds?

[Alan Brown]

Closing on a 3 plex in December;  one of the units is a bit thrashed, needs probably $8k to replace carpet, vinyle, kitchen and bath.  Owner has agreed to credit me $5k at closing, but it's got to go for 1031 approved closing costs.  

Anyone got a good idea on how to do some cleanup using 1031 funds?  The 1031 company said they have a construction version of the 1031, but its a $5000 fee just for them instead of the usual $500 for a replacement property, and meant for much larger construction projects that make the $5k fee worth it. 

I've thought about hiring a contractor to do the work, raising the sales price to cover it (appraisal should be fine), having the seller pay the contractor out of closing.  Risks there: Seller bails from the contract and I'm stuck holding the bill for the contractor who sharpened up seller's property for him!!   Not enough trust there to try that, and I'd have to sue him for my costs of contractor.

Any ideas?