Private Money vs. Conventional Funding

[Earl Gaines]

Quick question on my first deal I'm trying to purchase and need some advice on what I should do moving forward. Quick Story:

Found a nice quadplex in my local town that an investor is selling for cheap. Lots of attention from buyers, but because I knew her beforehand and explained my goals to her, she let me lock up the deal. Needs some TLC, but is a great deal for a BRRRR.

Tried to FHA loan it, but couldn't get around the fact that because of it's location near downtown, it is zoned as mixed-use commercial. Soooo, I asked my lender about doing a conventional loan, which I can do, but it starts the whole process over and the seller is getting anxious to be rid of the property. Should I contact a private lender who can close quickly and get the deal done ASAP? I am looking to renovate it for 12 months mostly myself and some friends, and then do a cash-out refinance after the seasoning is done to pull my money out and pay back private loan.

Here are the numbers:

Purchase price: $130,000

Down payment: $32,500 (25%) (conventional)
                             $26,000 (20%) (private)

Interest Rate: 5% (conventional with principal and interest payments)
                         10-12% (private with interest only payments with balloon at 24 months)

Appraisal value: $205,000 (this is what it appraised for before any work has been done)
                             $280,000 (estimated after reno)

Rents: $1,400 (already rents for this before purchase with 2 of 4 units occupied) 
            $3,000 (once units are renovated for occupancy)

Estimated Expenses: $1,300/month (during reno)
                                      $1,700/month (after refinance)

Estimated Cashflow: $-100/month (during reno while I live in flip)
                                     $800-$1,300/month (after refinance, estimates are depending on interest rates and conservative estimate)

Let me know if you need more numbers for better clarity. I'm just looking for some advice from more seasoned investors since this is my first deal and I don't know anyone in my personal life with experience on investing in real estate. Thank you to anyone that responds :)