I recently found a private money lender with the potential of funding my real estate deal in which is in its early stages.

It was a private sale and was sold “as-is” with all contents included.

The downpayment will be financed by a private lender.Mortgage Payments: -$350 to private lender ($60,000 at 7%)-$495 to seller (170,000 at 3.5% interest only)Monthly CostsProperty Taxes: $833Sewer: $100Insurance: $120Lawn Care/Snow Removal: $100CapEx: $100 (new roof, windows, everything is in good shape)Vacancy (5%): $150Repairs (5%): $150Total: $2,398.17Monthly Rent: $3,000Monthly Cashflow: $601.83I am still unsure of how to approach the tenant who is paying $1,800 instead of the written lease terms of $2,200.

. - Thanks everyone for the feedback on this thread, as well as those who reached out privately.

@Rick S.Full discussion of various issues in your situation could be really long, and it's best addressed in a private consultation with a tax expert. 

The deals that you will have to do will have to be either with a very trusting private lender, hard money lender, or partner.

Example:Having a 1st TD lender fund 85% Purchase + 100% Rehab,Then bringing in a Private Money Lender 15% down, and potentially capital for Closing Costs, Points, and Monthly Interest Payments.Do you structure your Fix&Flips or Commercial Value-Add / Repositions using 2nd TD Gap Lenders ?

Which would be the better option money centers, regional banks, small banks, or private lenders? 

Even going with private money rolled to new permanent financing would open the door to many more properties and more options for contractors and scope  and grade of improvements.

@John T.Looks like your father's position is that of a private lender or passive investor, as opposed to a partner.Even though he is your father, you really should define economic rules between the two of you.