@Tom Ott I've spotted a few opportunities in KC that seems like it could work out given my price range.

Sometimes you can work out others.  

But all in all, i'd have to agree with @John Underwood and get it done correctly, even if you have to work out a payment plan with the plumber/vendor.

Maybe not every year, but over time that is what it will work out to.

It will never work out.

But confident it'll work out!

That $1000 could either be refunded to us or credited on the next tax bill which we chose to do the credit. about a month later the lawyer who completed our transaction sends us an email saying the sellers lawyer knows that we ended up getting a tax credit and that it is owed to the sellers, and that they would take legal action if we didn't refund it. basically my question is how does this usually work out, are they entitled only to a prorated amount of it, are they even entitled to any of it?

If he has cash, and enough of it, maybe he can offer the owner a significant down payment for the home and they can work out a payment plan together for the remainder. 

It would take a special case to get it to work out properly.

This honestly seems like it could be a cash cow if the numbers work out and you do it right.