Need help evaluating an investment opportunity - sub-divided lots

[Raeline Scott]

I've been presented with an opportunity to invest in a 7 acre parcel on a mountain in NC, and need some help evaluating it. 10% annual return on the $175k initial investment, and 50% of the net proceeds of each lot sale (12-14 lots). 

See below for pro-forma returns

• 300,000 12 lots average sales price of 25,000
• -175,000 payoff of principle
• 125,000 after principle payoff
• -10,000 Less expenses
• 115,000 Balance of net proceeds
• 57,500 net proceeds (lot sales)split 50/50
• 17,500 175,000 @10% for 12 months
• 75,000 projected Investor proceeds
• This is an estimated cash on cash return is 43% 

Where would you begin in evaluating this deal?