For example, let's say you are guaranteed a 7% pref and the property delivers exactly that, but then sells with a capital gain. 

But when it's equity gains, no tax, only at time of sale and if you 1031 Uncle Sam let's you continue to use that tax-$ for investing purposes.

I'm trying to learn and gain confidence for when I'm ready!

My personal experience after 40 + years in the real estate industry is that “wholesaling” is a very INEFFICIENT AND INEFFECTIVE way to gain knowledge and experience relative to real estate.

If I end up foreclosing the property, I will gain $200K equity (in my example, the amount will vary with each TD).

I lost money (opportunity loss) but I gained a wealth of experience. 2.)

And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

Consider the "2 of the last 5 year rule" to avoid capital gains. 

Hey @Dalton Foote - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

After gaining some home equity, I sought to pursue my investing goals.