I've dealt with @Dave Foster before (my transaction was a bit more complex and didn't work out) but he does indeed guide you with your 1031 and helps you every step of the way.

Our team does amongst the most 2-4 unit transactions (regardless if VA, FHA, Conventional) in San Diego, if not the most.  

I bought a small lightly distressed home as a cash transaction on that account.

The effect this could have is a lack of experts involved in your first transaction.

Losing your inspection costs is a risk you will face in any real estate transaction, short sale or not.

Worst case, you spend some time learning about being a licensed agent and maybe close some transactions. 

There are many rules around such transactions.

Example: 50,000 purchase plus 50,000 in rehab dollars = 100,000 transaction and these require a 15% down payment on that 100,000 or 15,000 down.

Hard money is simply a professional licensed lender who offers X Loan to value loans secured by real estate and the buyer/borrower can effectively offer quick approved financing to a seller.Creating a means to wholesale such a deal to your buyer may or may not be possible depending on a number of factors and without some specifics, this answer would be a mile long to go over almost all potentials.I will say this, in a wholesale transaction, and depending on how it is specifically structured, having a buyer who is NOT all cash and has to get a loan with approval creates a potential problem where the transaction could fail.

Since your just starting out apps like Venmo are really helpful for these types of transactions.