I guess you could fart around with analyzing historical and current market rents, then apply $x towards closing costs, but this is much simpler:  TB/Optionee to receive 3% back in closing costs if exercised by month 12, 2% between months 13-21, 1% between months 22-30 (or some such). 

Don’t buy a historical house

Can someone in Austin let me know how I might go about gaining access to the historical MLS database of closed sales prices?

Whether they be LIHTC, CDFI Loans, historic rehab tax credits, etc.

The area is a historical district in a suburb of the metro Detroit area.

What is crime and historical appreciation like? 

When the property, built around 1902, was bought by a development firm, it was not in an historic district.

It scares me when it is mentioned that something always has to happen...Yes - Historically Manhattan prices have increased.However, Manhattan prices in the future can increase, stay flat or even decrease.

The problem I find in BP is that most people just don't understand these calculations.It's an Internal Rate of Return Calculation broken down by what the selling price of the house would be at the time, based on the Value of the house which is dependent on the Capitalization Rate and the NOI.In other words, those calculations projects your rents and expenses out for 20 years, as well as calculates the Value by using a 3% appreciation Rate, which is extremely low.It then seems to add all of it together and spits out an IRR of 9.24%The problem is that the majority of Investors anywhere, not just here on BP, just doesn't really understand that kind of calculation.Funny, but this is the kind of calculations that I really think all Investors need to know.What you would really need to know is not if this is a negative cash flow or not, but can you carry the $347 per month loss until the time it break even in cash flow, which those calculations don't tell you.Then, if you can do that, by the 20th Year, taking everything into account, including the negative cash flow for that short period of time (I can calculate it but am pressed for time when you would break even on cash flow), it would be the equivalent of putting your money into a Savings Account at the rate of 9.24%Now, that's not bad as an Investment.Also, the 3% Appreciation Rate may be far below what is the historic rate in that area so it could be way off and that would mean you get a much greater return.ANYWAY.... my views are very much out of the mainstream but that's because I fully understand all of the numbers you posted.

You have learned some valuable lessons including that while San Diego is a historically appreciating market it goes in waves.