I have read through this entire thread and would like to add one thing that I do not think was mentioned previously. Once you use Petey as a stud you can pretty much guarantee that he will
MARK(pee) in your home. So even if you sell your female after her litter you will still have a dog that could quite possibly spend the rest of his life either in belly bands or marking indoors. Just a little food for thought.
I'm hoping that you have decided to reconsider your decision to have a litter of puppies for your friends and family.