The only heat source for the second floor apartment is a large free standing natural gas furnace that is 14 years old.

I found the 180 day rule in the Rev Proc 96-31, Section 5 as follows:   "A taxpayer makes a change in accounting method under this revenue procedure by completing & filing a current Form 3115 in duplicate.  

(Naturally, this excludes appraisal fees, lender points, recording fees, taxes, etc...Another way to phrase, if I'm a cash buyer purchasing a REO, what "Title" expenses do I need to be prepared to pay?

What extra costs will be encountered due to the historic nature of the property? 

The main issue that I have with condo's are the high condo fees along with the unpredictable nature of association financial health as there have been so many foreclosures.

The population would have to decrease substantially for rents to go down a lot and that may happen with a major natural disaster or another huge tech bust but for now shortage of land and buildings in desirable areas combined with increasing population will hold up the market.

Tankless systems cost a lot, and require a lot of natural gas volume to support.Each tenant can adjust the temperature and pay for their own gas.

How is that some genious idea when that is the very nature of the foreclosure itself?

It's natural and healthy.  

Natural grass. an acre of natural grass is like  running a 2 ton air conditioner.