Assuming that is the case I'd likely move forward and then consider a quiet title suit to eliminate the deed restriction. 

It completely eliminates a realtors role from both the selling and buying side.

DSCR loans do not take into account your personal DTI so it completely eliminates that issue.  

House hacking in multi-family in this area typically means reducing costs - but not eliminating the cost all together.

Most important thing is to eliminate sources of water.I wouldn't worry too much about the stain itself.. 

Putting down more to eliminate negative CF is NEVER the answer. 

A lot of deals won't look perfect with regard to cash flow, but it's much more about reducing or eliminating your mortgage/rent costs.  

I would eliminate any bad debt and make sure you have reserves to protect the asset.

Saves time and eliminates potential headaches. 

I found one (cant remember their name now) who did it but it was either an issue with the $ amount of cash out that I wanted (not even the LTV, just the actual jumbo sized $ I wanted) and/or the term of the loan was incredibly short which would have eliminated all cash flow from the property.