If you're not comfortable with it, don't go for it - I think you've already made that decision. With 12 dogs and some kept outside it sounds a bit like a mini puppy farm to me. Perhaps not the best level of care that you'd want for your pup.
My puppy came from a breeder who owns 4 cockers (one from each generation) and 2 red setters. She has bred about 25 litters since she started many years ago. All of the dogs are pets (some sleep in the bedroom!). She also runs a grooming service. She has shown some of her dogs. She is obviously very experienced, but interested in breeding dogs with the right temperament, health, and nice looks. All the pups are bred in her home in pens, never outside.
I think it is very clear when you visit a litter whether you should get one - you get a gut feel. If you hesitate and feel something's not quite right, then move on. It can be hard, as those pups are so damn cute, but you have to feel that you trust the breeder fully.
Good luck with the search - it's worth waiting for the right one, that you feel comfortable with.