Buying a Home with Restrictive Covenants but Inactive HOA

[Brian Carnesecchi]

Hi, I live on a 2.5 acre parcel of land behind a subdivision. My driveway is an easement that runs along the backyard border of 5 houses in this neighborhood. One of those 5 houses just went up for sale. While we are in a hot market just south of Raleigh and everything is overpriced, this home is in an area that I fully expect to continue to have growth and appreciation long term. I am interested in buying the home with investor funds. Cash flow will be tight, but the future equity opportunity and its close proximity to my home is appealing to me. 

My problem is this: I just read through the restrictive covenants and it specifically states in there that there may be no rentals. However, I also believe that the HOA is not very active and possibly non existent or not active at all. The neighbor next to this guy has 3 backyard chickens even though the RC prohibit them. Another neighbor in the neighborhood drives his 4 wheelers loudly and fast up and down the street, which is a nuisance and no one does anything. People have rv's parked in their driveway when the rc states they must be behind the house and not visible.

Am I taking too much of a risk to buy this home and turn it into a rental given this situation?