I tried to find a hard money lender hoping that I can use the hard money loan to put another offer on property and extra funds to replace septic.

Professional organizations should spend their expertise, time, and money to develop legal contracts with expensive attorneys and then just hand that over to you for free?

Using your original assumptions, this deal is a money-loser!

Or will I go through with it and get some money and some experience which I can use later on in another deal?

Investing with none of your own money is also always an option, but understand, when you have no skin in the game, it typically means that you will be giving up more equity at the exit and/or splitting majority of the cashflow during the hold.

private money with a credit union's commercial funding How did you add value to the deal?

Money is not everyone's #1 motivator. 

Like @David Ramirez said it takes time, and you can't be afraid to spend a little money.

Conservatively, I would plan on 12-18 months of lost rent (before rehab) and a signifcant amount of money/time to turn over the unit. 

Unfortunately in SD $55K won't get you into a flip, you'll need at min 20% down for a hard money loan and then reserves as well.