Mid slope is supposed to work well for gravity fed water/housing.
You can have a tank/dam higher up the slope that gravity feeds the house, and the waste water from the house can be used to trickle irrigate a garden in Zone 1 down hill. Think about your veggies growing just down hill of your kitchen sink and using mulch pits for water infiltration for washing machines and the like.
Depending on time and scale you might decide you need mechanical assistance with your
gardening. While hugelcultures, food forests and the like work great, when you need to provide large quantities of staples for your family you might decide that a small tiller is needed to get your plot going. There is a reason farmer like monocrops and bare - soil they can be processed mechanically and quickly. Now I'm not advocating conventional ag, but I think there is a happy middle ground where
permaculture needs to scale up efficiently.
If you are looking at the sloping property - what is the upstream water catchment like? Is it extensive? Do you have neighbours who might be interested in a joint
project to make your seasonal stream more reliable? Swales on the slopes and
trees to increase water infiltration, gabions and simple works in the stream to slow water even if you can't make proper dams etc...
A few likeminded neighbours could make a big difference to the water retention properties of a small water catchment.
With regards your sheep -
Allan Savory's work on grazing systems might be of interest to you. I don't know how many sheep you could run on 10 acres where you are, but rather than invest in animals yourself could you borrow a largish flock to mob graze through your land occasionally? Forage in exchange for some lamb?