I don't want to get something good and then accidentally selling it or something. I'm gonna save everything I have and post it here for people to guide me.
Yes, buying LHC with water also gives karma. Actually buying any of the items with water gives karma. You get hero rolls with karma. I was able to get my Warlock (Soothsayer) from water (Mana) Almost at 1.8M water capacity so I can get more rolls!