Self employment tax (SET, which is social security plus medicare, including the half an employer usually pays) doesn't apply.OTOH, if your intent is to resell, even if you hold it more than a year, its still just ordinary income and subject to both tax at your ordinary income rate and SET.

If you over-improve it past the number that it can resell for (which is typically not that high for a mobile home) then you're looking a possibly taking a loss. 

So I'm wondering if purchasing straight options from these sellers, say for 10% of the purchase price, then resell the individual options would be a good strategy.

People thought it was a great deal, but in reality, they couldn’t resell them or rent them out.

Re-sell the trailer and rent the land back to the trailer buyer. 

To add to the mix:  I have also considered (1) simply buying another smaller property with the cash in  hand in Jersey City, (2) keeping what I have and buying with cash in hand an out of the area other type of real estate asset like a mobile home park (3) trying to buy the property next to mine in JC with cash in hand, creating a double lot and reselling with plans (4) 1031 for a short term rental/high end motel property in the Fort Lauderdale area by the beach making cap rates in the 9-11 range (all year round market for rentals) (5) sticking with what I have and wait for now.

I was thinking of building and reselling.

Less maintenance, easier to clean, lasts much longer than carpet.But since you plan on reselling at a later date, I would recommend going with hardwoods / tile in the kitchen, living room, dining room and hallways and carpets in the bedrooms. 

I understand we all have to walk before we run.. but in this case I suspect the wholesalers ONLY option was to resell to someone else.I doubt seriously that he put a contingency in the contract IE this contract closing is CONTINGENT on me finding another willing and able buyer..

Could you sell this to an investor as a cash flowing rental, could you resell it as a single family home to a buyer?