Need help evaluating an investment opportunity - sub-divided lots

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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?

@Raeline Scott The first thing I would do is evaluate the demand for these lots and compare them to other lots in the area. 

1) You mentioned the lots are on a mountain, Is this a resort mountain area?

2) Are there already utilities at the street? Sewer, gas, electric, water? If this is true raw land with no utilities in place that's a harder sell since grading and utilities are the most expensive cost to land ventures.

3) What's the current zoning, and are there any changes to zoning in progress to increase land value? 

4) Who is the target market for these lots? Knowing the target market helps evaluate the value and determine the pace of the sales.

5) You have pro-forma returns, what historical information are they based from? Sometimes a pro-forma is just a sellers hopes and dreams, proof the projections against reality. land sales usually don't spin off these types of returns unless they are in or around resort areas or major metropolitan cities where new construction is coming, not sure how a mountain would play into that scenario unless it's mountain cabins.