I have been wanting to start doing some flips as well as acquiring rental properties and I have been doing a lot of research first.

I can see a situation where you and a person very experienced in property management team up and form a company to acquire assets and each of you get some sort of split of the revenue (and expenses) of that company. 

If the auctIon requires funds in cash, you’d have to have the funds there with you, which seems expensive if you dont end up acquiring the property...Does this prevent hard money lenders for lending on properties to be bought at auction?

Property when inherited appraised at $ 1 millionImprovements $ 100kMarket value now $1.7Single exemption capital gain $250kCapital gain: $$350kProperty that will be acquired $600k (swap) +$1.1 million cash 

Been on BP for around 1 &1/2 Years now and basically used it for the tools (which are awesome), to help with acquiring RE and considering deals. 

I am considering a hard money loan to acquire it and then finding a private money loan to hold it and pay it off.

@Shiv Gettu  depending on where you choose to invest and what type properties you are looking to acquire I can help you on acquisition and management.

I would rather make a little less and still acquire an asset then lose out waiting for lower interest rates.Brandon Turner briefly mentions this on podcast #294 that people can spend a lot of time worrying about interest rates and potentially miss out on stellar opportunities along the way.

With the 4-plex: Once acquired, take the time to stabilize, maximize rents, minimize expenses and learn what is most probably the hardest thing about real estate industry: managing tenants and all their quirky little idiosyncracies! 

If you are able to use passive income to pay down the properties and still have enough to acquire the properties necessary to reach your goal, this is the approach I would personally take.