Your terms seem reasonable, but 10% interest might be a bit high for buyers.

A person can be selling a property with a NOI of $100k and ask $4m, the CAP rate will reflect that their expectations are too high (for an investor at least) and all the market factors, location, comps, fed rates, will put their expectations on a leash (or justify it). 

I highly suggest teaming up with a broker who you'd want to build a relationship with and truly understands the ins and outs of different underwriting guidelines. 

Part of the reason we've been taking our time is that the costs for building materials like lumber were highly inflated at the time we purchased the property.Our primary residence, is here in the same state and we'd like to keep that home indefinitely and eventually it would be our home part of the year during retirement, rather than to sell it and move.

With what we have, we could pay cash for those properties, so that we can avoid the high interest rate nowadays.

At least I will build equity and have some tax advantages, or even pay a lower price as a result of the high interest rates.

They are allowing more density in the area, but I need to ask specifics.

There's pro's and cons.Pro's:Not reported on credit (doesn't damage DTI and can do unlimited loans)Low doc (no taxes, DTI, employment)Close in an entityCon's:Loans are higher rates, but not as high as some have said in this thread.

Using a bank is the cheapest option and highly recommended.

Negotiate, negotiate, negotiate... yes i was taking the sellers position and safety.. however its something to keep in mind if they balk a little one could offer this does not have to super high rate maybe just a tad over the wrapped rate. but one could show them the math on it and it might swing the deal plus when they learn that its a safer way to do these it could also put the buyer in good standing with the seller ??