Seller Underwater, No-Rentals Clause in Mortgage

[Jeff G.]

Hello BP family,

I'm working with a seller who is in a tough spot. He has a tiny (sub 700 sq ft) two bedroom that he's underwater on. He's motivated as all heck because he's relocating to another state. I ran a subject-to deal buy him. Or, rather, he's had other wholesalers offer to take over his payments and rent it out and knew what I was thinking.

His major object to a subject-to deal isn't the "due upon sale" clause. But rather an "occupancy clause" which prohibits him from renting it. I've never encountered this. 

I'm open to suggestions on how to overcome this roadblock and help this guy out. Depending on the numbers I might consider holding the property myself. Or, I might just assign it for a quick payday.

What might my options be to proceed and make this a deal?