What would you do? SFH deal in SE Michigan

[William Ware]

3/1 single family located in a lower middle class neighborhood.
1150 sq feet
Asking price 20k
Partially rehabbed
Newer furnace and WH
Rents $750-$800 month
Estimate 3-5k to finish rehab (my standards)
Owes $9500 on back taxes (taxes $2000/year)
I spoke to the Realtor who is representing the owner (Doctor) and they are asking $20k, owner financing, 11% interest and 5k down. As I continued to dig the Realtor not only represents the owner, but also was the person in charge on the rehab. This was a potential flip that got away from her. There is also several violations on the property due to the Realtor negligence in not pulling permits, inspections etc. I did ask the following:
Would the owner pay all past due taxes.Yes
Why are you selling and not renting/flipping? Too much hassle, doesn't want to deal with the city inspectors..willing to accept the loss
My question is would you pursue this deal? What would you offer?