The good news is that they aren't too far from downtown or the Delmar Loop.

Some people aren't just willing to sacrifice.Go to the CT REIA.

During a stagnant or declining market, why aren't they selling as many properties as in a rising market?

In most instances they aren't less costly but they do provide a solution for difficult installation challenges.

So, if your aren't counting them in your calculations here then your cashflow is probably $255 LESS (assuming 5% budgeted for each) for a new cashflow of $245.

So I told him if you aren’t comfortable with that would you feel comfortable giving directly to lender?

If you already have a preliminary site layout showing the size and quantity of buildings you can put on the lot, you should be able to take that work on some budget construction costs and from there work your possible rents into the equation to see if what you have drawn makes sense cost wise, or if there is a more efficient way to lay the site out and reduce costs. 

Do you want to expose your family to the risks, since they aren't participating in the Developer profit?

My Owner Disbursements aren’t the total rent amount because of the expenses the property management company handles.

Because they aren't really subs at that point just their own contractor not under another persons license.