owner finance as first deal- tax deed

[Derrick Jordan]

im a newbie need help understanding how i should approach this deal. Seller is willing to owner finance. I working with a lender to cover acq and rehab cost. Seller wants 20 % down ( seller holds a tax deed?) I really not clear if the tax deed holder owns the property i checked the records and the county does show a sale in the amount of the tax deed. The owner is asking for less than 60k with 20% down. I want to do zero down allow them to hold a second position note for year and then refi and buy the seller out for way less than what they are asking im thinking 22k.

How should i approach this?