If you have a good business plan for the next property it could make a LOT of sense. 

Purchase price: $31,000 Cash invested: $66,000 Sale price: $147,500 Converted an abandoned, condemned three bedroom, one and a half bath home with two rooms (one 30x15) unused/used as storage, and attached single car garage that we (my business partner and I) emptied (3, 30 yard dumpsters!)

If you are focusing on volume, you might have to adapt your ROI to be able to acquire more properties and keep your people busy.

That will be a huge benefit as dealing with contractors is one of the hardest parts of the business in my opinion.

STR is a hospitality business.

My best friend and I want to partner together to start a rental property business.

Yes I am familiar with all that you mentioned as I have several LLC's for my business and investment properties. 

My business partner found it, and we negotiated the deal with the owner of the property, who was about to lose it since the city had condemned it.

I think overturning some of them will include getting some of the nearby lots to vote on it as there is a clause stating that that's allowed.The thing that scares me the most is regarding the stylistic stuff -- there's a clause stating -- "The homes shall be harmonious with and reflect the exterior design characteristics of these homes already erected on the property" and that combined with -- "it should be lawful for any peron or persons owning any real property situated in said tract, to prosecute an action or proceeding at law or in equity against a person or persons either to prevent him or them from violating these covenants or to recover damages for such violation"My RE lawyer friend said that its such a broad clause that it could potentially open you up to getting sued if a neighbor really wanted to depending on the stylistic choice of your home.

I earn much higher returns than I ever did as a rental investor, and don't have to lift a finger after the initial vetting discussion.That said, some investors really do enjoy building a side hustle business around real estate.