and a flippers intent is to resell not to hold for investment. 

Of course, I can do that since I'm personally connected to the developer.I buy a few condos for my own use and some extra ones to resell later.

3- Did the sponsor purchase the property and resell it to the syndicate?

If a payment is missed, may take theproperty back under the terms of the promissory note we will create at closing, and the seller keepsall upfront funds and the property, which they can then resell or use as they wish.

Are you planning to cash flow the property, or just live in it and reduce your overhead by renting out the bedrooms/units; then reselling it?

For perspective, this home was valued at $40,000 when I bought it last month and I feel I can resell for $100,000 right now easily.  

My specialty is buying distressed property at a low value and then reselling either wholesale or retail.

We also help you through the entire process of the rehab and resell so everything goes smoothly for you.

Main reason is we would like to buy a house given the growing family but need to make sure we have enough equity in it from the rehab to resell again within a year (or just over) should we have to move (which is a real possibility).

Of course, consult your own tax advisor.As for re-selling a tax deed, I believe the simplest way to do this would be by Quit Claim Deed (i.e., you relinquish your claim to the buyer without warranty).