Need a quick advice, deal is closing in 10 days!

[Rey Orinion]

Hi BP investors,

I have this townhouse(short sale) under contract since August of this year. I got it under contract for $163,000, plus I have to pay the following out of my pocket:

$2,251.89 = sewer capacity
$ 651.27 = HOA
$3,000.00 = Negotiation fee


Before making an offer, I asked the HOA if there is a rental cap under their CC&R's. According to the HOA manager, there is but was NOT maxed out yet at the time.

Here's the dilemma, we are closing in 10 days and found out that the "Rental Cap" has maxed out. What should I do? I am a buy-and-hold investor for cashflow only. By the way, they told me that I could only rent it out to family and relatives related by blood. Rent in that area is about $1,500 to $1,600.

So, I am deciding to flip this after closing but I found another problem from the short-sale Lender's limitations and contracts. See below:

"Grantee herein is prohibited from conveying captioned for any sales price for a period of 30 days from 12/17/2014. After this 30 days period, Grantee is further prohibited from conveying the property for a sales price greater than $195,600 until 90 days from 12/17/2014. These restrictions shall run with the land are not personal to the Grantee."

If I understand it correctly, it looks like I can sell in 30 days from Dec 17, 2014 for $190,000. If I wait 90 days I can sell for more. Anybody has a better interpretation? If I back out, I lose my 1K Earnest Money. Btw, I have run a CMA and the property could probably sell from $190-210 range.

Any help is greatly appreciated! Thank you in advance.

Sincerely,
--rey