The recapture tax is 25% I believe, so not quite as high as ordinary income tax rate.

Generally , when losses are recorded on the sale of section 1231 property, that loss is classified as an ordinary loss and is 100% deductible against other ordinary income. 

I was actually working with @Brit Foshee and he advised that the wholesaler wouldn't even give us a 3 day inspection period.  

Also, and while I haven't tried to permit a container building myself, I've been told by people who have that, because it's out of the ordinary for them, the city will require all the engineering drawings and stamps from an engineer registered in Oregon.  

Send anything you have my way.Thanks,Brit

The way you've laid out the facts currently, it can go either way but the IRS will say it's a flip vs an investment which will subject you to ordinary income and self employment tax.

IRS says it's inventory, in a business activity, not a long term investment.....subject to ordinary income tax, including both sides of SS/Med (15.3%).

Selling shortly after completion would be developing, subject to ordinary income tax.

I think if you buy a property with the intent of selling it, it is not a Capital Gain, rather it is considered Ordinary Income.  

One strategy would be to create a metrix to identify those properties of yours that would yield the greatest amount of cash but have the least gain and that you've owned for the shortest time (but still over a year so the gain is capital not ordinary income) so that your depreciation recapture is minimized.