MAke the offer based on "your numbers", not the seller's...and your numbers are based on what the market dictates. 

At 10 to 12% it’s not worth doing a STR  Find your market, that will dictate your financing3.  

You can't dictate where someone sleeps.

Though in bank-land, commercial multifamily is 5+ units, in Portland code-land, it's 3+ units, meaning you'd then have to equip your units with sprinklers and whatever else code now dictates.  

We will decide and complete the 'formalities' as to what else we will take from you as the situation dictates. 

In terms of raw land development, there are many factors which will dictate the feasability of the project.

What you uncover here will dictate which questions you need to ask next.

I suggest you learn how to identify your market as the market will dictate where most of the business will be.

Should I ever build up enough to have over 50% equity and only borrow under half of the LTV I want to see if I can dictate or change their loan requirements.

Local market dictates demand for investment decisions and what unit mix works best.