And a lot of historic homes.

Be aware that many of the neighborhoods near WMU are in a historic district, which limits your options regarding upgrades/renovations to said homes. 

In my area the cap rates are close to historical stock market return stock, so at some point it becomes a wash, and I prefer passive stock market investing to more activel real estate investing all things being equal.

So historically the statement is false.  

I am sad to think that it will be another Venice historic property demolished by a developer.

My market is actually in a small town in AZ where historical sales/asking price is around 90% for residential homes.

I was recently listening to one of the older BP podcasts (~ episode 46) and the guest stated that he has historically stayed away from all properties with lead-based paint due to the high cost for clean-up.

(lavaca historic district) and the entire area is being gentrified.  

Historically taxes have been around 3,000 a year (obtained from public records).

Based upon historical, I would say my cashflows, ROI, is about 10-14%, and appreciation is about 10% on one 4plex, and the other about 50%.YMMV (your mileage may vary).Terry