Multi-family Acquisition w/ Bad Tenants

[JR Nieman]

I've offered on a duplex (Class B) that is 100% occupied. After entering the due-diligence period, I found out that one of the tenants is 2 months behind on her rent. My plan is to increase rent by $125 ($625 to $750) on both sides of the duplex as there is an identical duplex behind the property that has active tenants paying $750. The problem is neither of the current tenants will be able to afford the increased rent. 

As a prerequisite to closing, I've asked the seller to evict both tenants. In return, the seller asked that I put up $5,000 in due-diligence as he doesn't want to risk losing tenants if I don't end up closing on the property which is understandable but $5,000 is a lot of money. 

I want the seller to handle the eviction so he would be liable for any damage to the property during this process. I would acquire an empty property and have the ability to screen/find my own tenants. The only problem is, if the tenants do damage the property during the eviction process and the seller doesn't want to fix these damages, it's my understanding that my only legal course of action to have the property repaired back to it's normal state is to take the seller to court. At this point, I'd be facing legal fees as well as losing the $5,000 in due-diligence. 

The seller doesn't think the tenants would damage the property and he does have security deposits from both tenants.

Based on the information above, I have the following questions:

(1) Is anyone aware of an addendum that would require the seller to return the due-diligence money if he decides to not repair damages incurred by the tenants?

(2) Would I be better off closing on the property and handling the eviction process myself as opposed to putting $5,000 in due-diligence up?

(3) Does anyone have a better suggestion on how to handle this?

Thanks in advance for any feedback!