Creative financing for seller to avoid capital gains?

[Becky Orth]

I just bought a house at a sheriff's sale, but the owner has a history of foreclosures and coming up with the money during the redemption period. She told me she already has a list of people wanting to buy the redemption rights. She has 11 different properties in a prime area of a college town that are all in need of repair. She told me she would like to sell some of the properties,  but needs to avoid paying capital gains. 

Am asking for some advice:

1. Can I and do I also offer to buy her redemption rights? If so, how much over the the amount the bank was owed?

2. Is owner-financing an option to avoid the capital gains taxes?

3. Do I need to get title and property insurance during the redemption period?

Thank you in advance!