And hey, every challenge or setback is just a lesson in disguise, so keep your head up and keep learning.

I want to buy and hold and have enough for about 20-25% of 165-175k for investment down payment.

As for your question on the hard money lenders - I don't think it matters how you source the equity for a deal, but it's more important how much equity/downpayment you can put down on a deal - i.e. 10%, 20%, 30%, etc...

It’s only “100 deductible interest” and loan pay down. 

I do however have a decent sum of money in savings for a down payment as well as would be able to get a parent as a cosigner on the loan to help with income if needed.

If you are buying it to flip, you aren't going to find much less than 20-30 percent down.

For HML, you will likely need more than 10% down without any experience or partner, plus closing costs (which will be high using HML), and then you still needs funds to start the rehab work (lets say 10-20K) before your renovation financing becomes useful. 

Quote from @Joe S.: Have you ever noticed that people can send you a picture of themselves and then when you see them in person you think they look a way different?

Of course, since they put down a substantial option fee they are more likely to keep the property nice.

I have one lender that is wanting 25% down that is local.