I have become so numb to DC and MD's narrow structures; It blends in as  NOT so unique anymore! 

-or-Option 2: Purchase the house and the lots for $370,000 (tax value) with Seller Financing and $40k down at 2% interest (blended P&I payments) for 10 years amortized over 30 years.

Given the overall desirability of the city and proximity to larger buildings, the asset classes pretty much blend in, meaning well positioned smaller buildings can be as profitable and desireable as formal "class A" mega buildings.

You can add 2 tenants and a current one goes dark so spinning wheels over 5 to 10 year hold and blending cap rate up slightly over time.

If I don’t purchase I forfeit  Pros- Unparalleled beauty of a location. 12 minutes from new Netflix production studio.

Maybe at an 8% coupon blending your effective rate up and reducing your overall cash flow (albeit with no equity). 

I'm thinking a blend of owner financing and rent to own of some kind.

Since we are between tenants, I figured I'd take their move out inspection and have an enjoyable weekend patching and fixing up the place myself - besides, I filled all the nail holes and little dings, then painted it with matching paint and made sure it all blended it, I doubt the PM's painter would be nearly that perfectionist.  

for this reason, to blend the models can be overly complicated AND inefficient. 

Anybody that has traveled or lives there I'm sure would agree with me that the people, the landscape, and the culture is unparalleled in Canada.