Since it doesn't reflect current zoning, you may be able to go before a historical committee/city council governing body to have it removed - and if not, to court where a judge can rule on the intent and usefulness of the restriction.  

This would hedge your cashflow risks as well.Alternatively, buy there, live there, and lobby to get it changed/run for city council.

I'm not expecting to receive legal council here, just other investors experience from similar situations.

The returns are limited, the penalties for a mistake can be severe, and the legal council needed is expensive.The way people profit in this area is the purchase of notes at a large discount to mortgage balance.

I was on the Board of Directors of the Ozarks Literacy Council, Chairman of Community Hosuing Assistance and Development, active with the Red Cross, American Cancer Society, on and on....make friends!

We handle each call individually but we always recommend legal and tax council prior to an owner making any decisions.

Seller should seek advice from their legal council prior to agreeing to the terms of this contract.XI.TIME FOR ACCEPTANCE AND EFFECTIVE DATE: If this offer is not executed by both of the parties hereto on or before MONTH _______, 200_ the aforesaid deposit(s) shall be, at the option of the Buyer, returned to him and this offer shall thereafter be null and void.

Seller should seek advice from their legal council prior to agreeing to the terms of this contract.XI.TIME FOR ACCEPTANCE AND EFFECTIVE DATE: If this offer is not executed by both of the parties hereto on or before ___________________, the aforesaid deposit(s) shall be, at the option of the Buyer, returned to him and this offer shall thereafter be null and void.

Without knowing details of New Mexico state law, I would believe Matt's council provided the best guidance for Matt in the context of this post.

It has been a topic on city council lately and no one knows which direction it will go.