Glad you didn't walk away from the deal because of the back-due rent. 

Like I said, I don't know if a judge is going to let you walk out of a contract for such an insignificant issue.

If they do get turned on, I believe seller would be liable for any issues as you do not own the house.As for them signing contract saying they would but not choosing to, your likely only real world remedy is walk away and not buy house.  

He wants to cash out his ownership, pay his taxes, and walk away. 

However, this might require some programming on my end -- if you know how to program something like this, could you walk me through the steps (I assume it's Java?)

If not, walk away.

If you intend to do a 1031 ask your title agent for a qualified 1031 company to handle it and they will walk you through it.

I prefer to create more value by buying building with lots extra unfinished spaces or big dry walk out basement walk in attics, attached barns etc adding bedrooms increases cash flow quicker cheaper than extra bathrooms and adding entire apartments great too.

To capitalize on a new market, and a hot one like Austin, you want to find a real estate team, under a brokerage, so you can walk into training, leads, coaching, mentorship.

@Tyler HahnThis might not be helpful at the moment, but in the future do a walk around inspection with them once you become the new landlord.