Is the potential profit better since the loan is less with borrowing on a lower purchase + rehab?

Without seeing the property, all of those fixes you listed could easily cost the difference between the purchase price and ARV, eating up your profit- make sure you are comfortable with your numbers. 

I want to get the lot under contract and then sell the contract so I need to be sure I can make a good profit on this.

My uncle and I have talked to the president of the non-profit and they are interested in selling it, and would take what is currently left on the mortgage for the sale since they would disband the non-profit.

Unless those expenses were paying him and other family members to reduce his " profit" keeping within the bounds set by HUD .Who says my brother in law isnt worth $125,000 a year to change light bulbs . 

They can ask whatever price they want, even if that nets them a profit from what they were owed. 

Investors, what would be your desired profits after a flip?

I know that Phil takes your money up front and that is the tough part, but if he teaches me and leads me to my first profitable deal EVER, why wouldn't that be worth some money?

Probably more profitable!

If you buy it, you're not a wholesaler anymore.Here's how you do it:1 - Make the offer in the name of an LLC for $10k, thus the LLC is the owner of the "contract"2 - Sell the LLC ONLY (with the contract to buy as an asset of that LLC) for $15k (the profit you would have made if you had to buy the property first)3 - Buyer of the LLC (and the contract agreement/asset) executes the "contract" your LLC agreed to for $10kResult:1 - No money comes out of your pocket...ever.