Good or Bad investment with Restrictive Covenants?

[Pete Pras]

Hi.

Looking at a deal through my wives family for a direct waterfront property in RI House, dock and tennis court. However, there are restrictive covenants one sister who lives in back is imposing. 1- a height restriction on current house limiting the current structure to its current height and nothing to rise above the peak i.e copula, weather sensors etc.. This would be written into the deed for perpetuity. 2- Wants to split the property in order to retain HALF of the current property making her property a waterfront access parcel. The split property would then be co-owned in either an HOA or an LLC. My spider senses are tingling and I want to run away but my wife already owns 25% of this spectacular lot and the purchase price is below market even with splitting the parcel. I feel I can agree to an HOA or LLC for a reduced price but I cannot accept the height restrictions. Any comments would be welcome.