How to Safely Close On 4-Plex Owner-Carry During Tough Eviction?

[Burt L.]

I have a 4 plex that I am buying on a 20 year owner carry with 7% down. It is due to close tomorrow and a tenant eviction hearing is the following day and there is no security deposit in place for the problem unit.  

The seller lives next to the problem unit and is of course quite focused on the eviction. He let someone he trusted move in next door without a lease as that person does work around the property for him, and that person let someone else come in and had a quickly broken relationship with second person, and that second person let a third person come in with a new relationship with second person. The first person isn't a problem as a friend of the seller and is about to move as the third person is physically intimidating though only the second person is named in the eviction, for non-payment of half of the verbal lease agreement.  As the settlement statement current is, I am withholding $5K as a security deposit until the seller vacates in 30-60 days with a post-closing occupancy agreement, before I knew of the problem tenant contesting a pretty clear-cut eviction process for non-payment. 

My concern is that the unit under eviction will be heavily damaged with no security deposit and insurance doesn't cover tenant damage, though a criminal act. I walked though using a home inspector last week and no damage to date. 

I would like to close tomorrow as the deal is favorable and the contract expires tomorrow and the seller is more focused on the eviction and wants out. He had played me pretty successfully against other investors before and I so I am leery of extending as he is ready to close though I am confident he is also willing to extend. Thus far he hasn't consulted legal counsel though he has mentioned it - but he has been transfixed on the eviction.  I am concerned an attorney might try to talk him out of doing an owner-carry or create other closing difficulties. 

Some of the options I see are to extend the contract or increase the security deposit significantly and  have it include the unit in question. Maybe there is something else I am missing, as I am "too close" to the transaction, similar to the seller being too focused on the eviction as he lives next door to all the drama. 

With the eviction order in hand, the seller doesn't have to communicate the property was sold and can continue the process without me restarting the process, though my attorney said I could do a 'substitution of plaintiff" if I wanted. 

I really would like to get this closed but have the unknown of having a destroyed unit without a tenant security deposit in place. Is there something else others might suggest?