The hint from the seller's agent is that they're close to their bottom limit because they have a mortgage and don't have money to bring to the table.

The more the exposure is limited the smaller the chances of hitting the bid a seller desires.  

So my question to experienced vinyl plank users is will the planks take 1/2"or is the 1/4" measure really the upper limit and not just a value that is determined for long term warranties.

As an investor/agent I think you need to be a little more aware of making sure everyone who is a party to the transaction is happy so as to limit your liability.It can also be a little bit harder to get yourself out of transactions than if you were not licensed.

The catch is that you have to occupy, so that limits the way you can invest.If you find a FSBO, they can do whatever you decide to agree on.If you find a long-term private lender, you can do whatever you agree on.If you do flip style, you can buy with hard money for a % of ARV, which may cover up to 100% of the purchase and remodel.

There are a lot of options in the area however, and you shouldn't limit yourself to one. 

This only pertains to allowances given as credits for loan purposes, if those credits are allowable and you qualify at the required loan to value then the seller may apply all the credits as agreed, these are to separate matters, what is credited as a down payment for a loan and what is agreed to.This is why most rent to own buyers fail, they assume what the pay is credited to obtain a loan and they are not as contracted, you only find out when the property is appraised so you need to save more in the event your contracted payments are limited to only the excess paid over the fair market rent. 

This limits your pool to Pretty Houses that are habitable....  

Single-family houses: Tenant agrees to provide for adequate pestcontrol, including, but not limited to preventing and eliminating destructiveinsects, rodents, and reptiles found on the premises."

SELLER CONCESSIONSSeller concessions include, but are not limited to, the following:Payment of the buyer’s VA funding feePrepayment of the buyer’s property taxes and insuranceGifts such as a television set or microwave ovenPayment of extra points to provide permanent interest rate buydownsProvision of escrowed funds to provide temporary interest rate buydowns,Payoff of credit balances or judgments on behalf of the buyerSeller concessions do not include payment of the buyer’s closing costs or payment of points as appropriate to the market.Any seller concession or combination of concessions which exceeds 4% of the established reasonable value of the property is considered excessive, and unacceptable for VA guaranteed loans.