@Mike Van Arsdale, I saw a very interesting chart the other day comparing 25 year returns of real estate over all to the stock market to real estate 50% or less leveraged. 

What scares me is how large a mortgage or money borrowed is as compared to the rent you charge for a property.

Pricing is also very comparable. 

The two houses in my neighborhood using traditional brokers are listed.

So, I put together a spreadsheet comparing what I've been told that others buy and a couple I've done.

@Jerrad Shepherd,The appraiser may be trying to justify the value of a comparable.

If this is an option the loan can be secured on your behalf whether it's a FHA or traditional loan. 

Second, if you look in other markets be sure to look into the long-term stability aspects of the city, the total number of units in the city, compare that to the total number of SFR.

@Patrick Philip Well, the other three being in a historic district does make a difference...the People who like historic district properties generally pay more than for a comparable house not in a historic district, and historic property renovations generally cost more due the restrictions.This is a case where 1/2 mile away are Not comps...many times just a block or two across a major road/subdivision boundary are not comparable.Also, the more sf you have in comparison to comps, the lower the $/sf value you have.....a 1900sf 3/2 in the same neighborhood won’t have the same $/sf. as a 1500 sf 3/2.

How does the local market compare to NJ/NY?