Institutional private money is really no different than Hard Money except maybe they can close a little faster but sometimes it is a title issue and you can't anyway.  

I differentiate between hard money lenders, and private money lenders.

As a broker, my biggest pet peeves are hard money lenders circumventing to my clients, not being upfront about fees, asking for a commitment fee prior to issuing loan docs, and "matching" my broker fees, even though I underwrote the file, got the client, and did all of the processing work. 

I have already talked to hard money lenders and got the pre approval.

Lost money doesn’t always mean disaster if you restructure smart.

You’re smart to protect that cheap 3% debt.

Keep things simple and don’t spend money on stupid stuff

The big issue is Hard money lender requires interior pictures.Can I change my lender and have another one who doesnt require visiting the property?

The next one is where you get to refine your strategy and start scaling.Sounds like you structured it smart too, low down payment, some closing costs covered, instant equity, and a tenant already in place.

Now I can afford to lose money on the place, but if you can't you should seriously rethink the strategy.