Essentially, I am curious to find out if my downpayment, which truly appears as if I have equity in the house, will in turn be taxed upon resell.

Outside of that there are some companies (AAN TV Realty Inc is the first one that comes to mind) that love buying cheap lots in rural FL counties to try to resell to out of state buyers. 

I would like to do this myself without using 3rd party re-sell companies. 

You may need to talk to their commercial lending people because those are often the people who deal with portfolio loans (loans the bank will keep and not resell).

., It's all about intent - In a true flip your intent is primarily to resell. 

Lenders we're offering me whatever I wanted and telling me I could just resell in a few months and make a killing.

You should know the market well enough that you know that you can resell it at a higher price. 

I typically buy land only if I can resell it to a builder ASAP.  

What did you buy it for, resell for, closing costs (if any), etc?

I mean if of course foreclosed properties are much cheaper than regular homes for sale, why doesn't everyone buy them and just resell it for a higher price to make a profit?