Deed restrictions are an encumbrance, restrictive deeds can expire and a seller may not be aware if covenants expire or you can use deed restrictions as a negotiating tool and may still change the use without violating a deed restriction.

An HOA can easily restrict someone trying that strategy. 

Fairlawn vs Goodyear heights is a completely different market that could be in the same zip code.

If you do budget that much, the you will easily hit your profit target.There are currently no restrictions in Lewis county and STRs work there, but there is always discussion on them by the city.

Do Snowbirds usually like ground floors since They might have restriction climbing stairs. 

In light of that did the developers wind up getting a pretty decent deal out of this after they took a big risk on a property with crazy restrictive zoning and no clear path forward prior to purchase?

While it’s an affordable entry point with low maintenance, you need to watch out for high HOA fees, rental restrictions, and resale challenges.

To list a few...Anyone who wants to increase their property’s income potential (and equity) and build new housing in a market that struggles with high prices, low supply, and few new construction.House hackers who live in their primary and want to airbnb an ADU love this strategy or vice versaInvestors who want to do both long term and short term benefit from having two separate units.Rental Restrictions on ADUs.Thankfully, Raleigh is very STR friendly and ADU friendly right now.

If we become heavily restricted, what chance does the rest of the DMV have to get their own regulations that make sense?

I personally feel landlording in Indianapolis is pretty easy as far as restrictions go.