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 ?

and he asked me to send over the contract Through Email, Now I've never done a deal before, am I risking anything if I email him a contract (with my fee tied in of course) how would that go?

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.

Please pm me and I can give you his email

@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.