Using the conservative low sale price of $500K this would net me about $170K to use as a down payment on something much larger in a more up and coming area.

Every real estate agent I know (all over the country) is down on sales, things are selling much slower, and just not as much action as has been for the last few years.

We had been "househacking" or renting our old condos before that. 12 months ago, we paid cash for our current rental (because we couldn't get a loan as a result of a recent short sale). 

I acquired a property at a sheriff's sale, but the owner has a history of coming up with the money or selling her redemption rights during the redemption period.

No real need in doing it for a straight sale though.

No sales pitch or charging money allowed. 

My questions are how should I go about the purchase and sale of this home?

Should I have him add language to the promissory note that I am paid out first upon sale of the property?

Sales price was 58k so with the 20% and closing cost I paid about 13.5k up front.

this should be quite easy for you.I deal In philly you would be my go to type of guy.. when I get a letter or call from a philly non licensed wholesaler I don't give it the time of day.. but that's.. me I tried over the years.. but the industry is plagued by beginners who are trying to do as @James Masotti described the very hardest thing to do in real estate.. and like anything sales related.. there are a certain amount that will make it work.. but those folks would make any business work.. the rest they just do what others mention they get whopped up on Hey I am going to wholesale so I can buy and hold.. blow what marketing money they have then just fade away.. seen it for decades.. especially in the foreclosure realm.