The 'Dad' Loan -- Help with terms...

[Joshua Feit]

Hello BP!

I am a new investor with four doors in the Atlanta market. My Dad is intrigued by my foray into investing, and he seems interested in financing a few of my upcoming deals. I have a few questions about how to approach this, and I'm wondering if you could answer based on the following mock deal:

3/2 Single Family Home
Purchase Price: $40,000
$5K repairs needed to get the place rent-ready
Rent $800/month

Questions:

1) Should I ask for 100% of the funds, or is there a reason to put up some of my own capital?

2) What terms would be fair for the loan (interest rate, length of loan, etc.), considering that the 'bank' is my Dad, and I want to give him a good return on his investment. (I'm hoping to make this a good experience for him, so he will want to invest again and again.)

3) After all expenses (including $60 for insurance, 10% figured in for management, a 10% vacancy estimate and 10% set aside for capital expenses), there's about $450 positive cash left each month. Is there a way to structure the loan so the payments are less than that, and still make this a good deal for my pops?

Thanks so much for the guidance!