It sounds like you're doing ok. You should be able to get top shelf quality for $200 an ounce from your care giver. As a general rule they sell to you at wholesale prices and any material over what you need, he sells to a dispensary. Its something you need to discuss with any grower. My feeling is that if he's a quality grower he can give you 2 ounces a month and sell the rest to dispensaries to cover there costs. But every grower is different.
He should be able to let you see the grow unless he's growing for more than one person and he's worried about being busted.