Tenants are not fragile flowers requiring that landlords jump through hoops every time they call.

The lender is at a 60% LTV after I rehab it. he gets a monthly check and is quite happy with the arrangement.

The interest you save is great and the mortgage balance will accelerate downward faster.So now when that is arranged and recorded - there are a number of things you can do next - refinance - put the seller first in second place - you get cash -- when you are ready to sell you can take some cash, do a wrap on your interest free mortgage and your existing mortgage and charge interest on the money you owe (it don't get no better than that - the yield is off the chart).

How have your living arrangements been throughout your life? 

I'd like to get some advice to see what anyone would do in my situation and if they would be cautious of red flags.So I'm currently in business with my dad.  50-50 arrangement, we own 1 property  so far and all has been going great. 

Here is a link about my employers gitca arrangement with the IRS if you’d care to look it over. https://www.irs.gov/pub/irs-pdf/p4932.pdfThank you for your reply, but I have to say I don’t appreciate the “disingenuous” comment.

- want to have a private garage and a driveway to work on their car- want to plant some flowers, tomatoes etcYou can see those are mostly lifestyle issues and people are happy to pay more if they get that lifestyle upgrade. 

Every time I hear of a landlord doing this arrangement with the seller it goes south .

An unofficial arrangement where your child gives you a few hundred dollars when they feel like it (and faces no consequences for not paying) does not make you an investor.

I would contact the owner first and allow him to make the arrangement.