We exchanged about 3 sets of offer/counter offers until we came to agreement: I would wholesale his property to a cash buyer with no inspections.

Your best chance of success is finding someone who you can learn from in exchange for your time and effort.

I do not think and I wouldnt bet that prices would drop. 

More facts would be needed to give you any advice worth listening to, BUT it seems from your description that you have a bird in the hand now and are considering exchanging that bird for another bird in the bush. 

I just got done doing a 1031 exchange with no agents.

I agree with @Joe Villeneuve that partnering would be the best bet for your first property, and in the same idea why I would suggest house hacking in your own area first.

Multifamily has gotten more competitive in many markets so properties have exchanged hands multiple times diminishing the margins.

Your best bet is to do the human thing by helping this person find another space, but also do the correct business decision which is to terminate this business relationship. 

Your best bet is to start with those articles and listen to some podcast episodes from BP.

I will do a 1031 exchange, I want to invest and distribute this capital into other property's.