As Bill pointed out, if you're planning to rent it out, as long as everything is working, you probably don't want to replace anything.But, if you're planning on flipping it (reselling it), then you're going to want to ensure that anything you don't do isn't going to negatively impact your ability to resell it.

I used them a lot when I lived in CO and found the vendors to be legitimate - especially as their ability to get future work depends on your rating of them.

I know that there are people here who have said this isn't legal, but no one has ever been able to provide any evidence that a deed restriction such as this is in violation of any law.Deed restrictions are perfectly legal, and restricting resales through a deed restriction is nothing out of the ordinary, and not just with REO sales (I have a friend who inherited a house when he was younger, and the house came with a deed restriction restricting his ability to sell the house until he was a certain age).I don't know any way around the restriction, and while I don't know for certain what the penalty might be, I would assume they could come after any profits at the very least.

Sorry Zach, no, all conventional loans on non-owner occupied need to show the ability to pay the loan.

As @Chris Mason mentioned, the ability to hold here is extremely important.

become very familiar with DTI and how it works because you need to understand what you are buying now will effect your ability to buy in the future.  

Even if you don't like the way they keep the unit, you will have to give you notice and the ability to clean it up and can't just start an eviction and destroy their ability to find another home.

You mention not having the ability to book online as a negative.

I have the ability to completely wipe this debt but I also do not want to part with all of my capital as it will delay my ability to invest.

I like the idea of having the ability to provide a tenant reference, that is a really good idea.