Would This Deed Restriction Stop You From Buying?

[Jeff Morelock]

First the numbers...

ARV = $150K

Repairs = $37K

House is in a nice deed restricted community in SW Florida priced at $77K.

Here's the deed restriction

If house is purchased by an investor who intends to the fix and sell the property, the investor cannot sell the property for more than 120% of the purchase price for 90 days. 

Once 90 days is up, the investor can sell it for whatever the investor wants. 

Since getting the $150K includes adding a bedroom and a bathroom, and will most likely take 90 days anyway, I think its worth doing. 

What about you?

[Wayne Brooks]

This is a typical FNMA deed restriction for an REO or shortsale...has been for years.