SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC.  20549
                             FORM 10-Q


(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended           September 30, 2004
                               ---------------------------------------

                                  or

[   ]  TRANSITION  REPORT  PURSUANT TO SECTION  13  OR  15(d)  OF  THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________to ___________________

Commission file number                       0-14934
                       -----------------------------------------------

                     DIVERSIFIED HISTORIC INVESTORS
----------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

     Pennsylvania                                        23-2312037
-------------------------------                    -------------------
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                      Identification No.)

                 1521 Locust Street, Philadelphia, PA   19102
----------------------------------------------------------------------
           (Address of principal executive offices)   (Zip Code)

Registrant's telephone number, including area code (215) 557-9800
                                                  -------------------

                                    N/A
----------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since
                             last report)

Indicate  by  check  mark whether the Registrant  (1)  has  filed  all
reports  required to be filed by Section 13 or 15(d) of the Securities
Exchange  Act  of  1934 during the preceding 12 months  (or  for  such
shorter period that the Registrant was required to file such reports),
and  (2) has been subject to such filing requirements for the past  90
days.    Yes        No   X
             -----     -----

Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act).  Yes       No   X
                                                     -----    -----

This   Form  10-Q  contains  "unreviewed"  and  "unaudited"  financial
statements. Refer to the Explanatory Note on page 2.

<PAGE>


                           EXPLANATORY NOTE
                           ----------------

Diversified  Historic  Investors  (the  "Registrant")  is  filing  the
following Quarterly Report on Form 10-Q for the period ended September
30,   2004   containing  "unreviewed"  and  "unaudited"   consolidated
financial statements.

On  July  11th,  2005  the Securities and Exchange Commission  ("SEC")
notified  the  Registrant of its non-compliance in  meeting  reporting
requirements  under  Section  13(a) or 15(d)  of  the  Securities  and
Exchange Act of 1934. The Registrant's inability to meet its reporting
requirements  is due to the dissolution of its former  auditor,  Gross
Kreger  &  Passio, LLC. This event was discussed in Item 4.01  of  the
Registrant's Form 8-K filed on June 27th, 2005.

The  Registrant recently engaged a new firm, Russell Bedford  Stefanou
Mirchandani,  LLP  to  audit and review the  Registrants'  outstanding
consolidated financial statements. The audit fieldwork began  in  July
2005;  however, because of the time expected to be involved in  having
the  new  auditor  perform the audit and review  of  the  consolidated
financial statements, the Registrant cannot advise as to the  date  of
completion of the audit and the filing date of the amendment  to  this
quarterly  report. The Registrant will endeavor to proceed  with  this
audit as expeditiously as possible.

In  the  interim, the Registrant is filing the consolidated  financial
statements  contained throughout this quarterly report as "unreviewed"
and  "unaudited."  The  Registrant intends to make  its  report  fully
compliant  with  SEC  rules  and  promptly  thereafter  will  file  an
amendment to this report with the SEC.


<PAGE>


                    PART I - FINANCIAL INFORMATION
                    ------------------------------

Item 1.   Financial Statements
          --------------------

          The financial statements presented have not been reviewed or
          audited by an independent auditor.

                    DIVERSIFIED HISTORIC INVESTORS
                    ------------------------------
                 (a Pennsylvania limited partnership)

                      CONSOLIDATED BALANCE SHEETS
                      ---------------------------
                              (Unaudited)

                                Assets
                                ------

                                   September 30,    December 31,
                                       2004             2003
                                       ----             ----

Rental properties, at cost:
 Land                             $  294,000       $  294,000
 Buildings and improvements        3,899,165        3,899,165
 Furniture and fixtures              202,374          202,374
                                  ----------       ----------
                                   4,395,539        4,395,539
Less - accumulated depreciation   (3,189,441)      (3,061,970)
                                  ----------       ----------
                                   1,206,098        1,333,569
Cash and cash equivalents              7,962            6,474
Restricted cash                       46,746           78,679
Accounts receivable                   13,063            2,559
Other assets (net of amortization
 of $39,729 and $38,305)              38,496           21,451
                                  ----------       ----------
     Total                        $1,312,365       $1,442,732
                                  ==========       ==========

                   Liabilities and Partners' Equity
                   --------------------------------

Liabilities:
 Debt obligations                 $3,403,354       $3,403,354
 Accounts payable:
  Trade                              439,929          388,662
  Related parties                    577,356          565,254
 Interest payable                  1,190,606        1,157,368
 Tenant security deposits             52,190           39,950
 Advances                             96,689           96,689
 Other liabilities                     7,957            9,618
                                  ----------       ----------
     Total liabilities             5,768,081        5,660,895
Partners' deficit                 (4,455,716)      (4,218,163)
                                  ----------       ----------
     Total                        $1,312,365       $1,442,732
                                  ==========       ==========



The accompanying notes are an integral part of these financial statements.

<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS
                    ------------------------------
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 -------------------------------------
                              (Unaudited)

                           Three months            Nine months
                        ended September 30,     ended September 30,
                         2004        2003        2004        2003
                         ----        ----        ----        ----

Revenues:
 Rental income        $134,243    $142,501    $378,520     $429,871
 Interest income           133         426         996          903
                      --------    --------    --------     --------
  Total revenues       134,376     142,927     379,516      430,774
                      --------    --------    --------     --------
Costs and expenses:
 Rental operations      80,854      62,386     274,335      247,969
 Interest               66,899     132,043     213,840      397,802
 Bad debt expense            0         120           0          120
 Depreciation and
  amortization          42,965      49,377     128,895      148,133
                      --------    --------    --------     --------
  Total costs and
   expenses            190,718     243,926     617,070      794,024
                      --------    --------    --------     --------
     Net loss        ($ 56,342)  ($100,999)  ($237,554)   ($363,250)
                      ========    ========    ========     ========

Net loss per limited
 partnership unit    ($   4.80)  ($   8.61)  ($  20.26)   ($  30.98)
                      ========    ========    ========     ========


The accompanying notes are an integral part of these financial statements.

<PAGE>


                    DIVERSIFIED HISTORIC INVESTORS
                    ------------------------------
                 (a Pennsylvania limited partnership)

                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -------------------------------------
                              (Unaudited)


                                             Nine months ended
                                               September 30,
                                             2004         2003
                                             ----         ----

Cash flows from operating activities:
 Net loss                                ($237,554)    ($363,250)
 Adjustments to reconcile net loss to
  net cash provided by (used in)
  operating activities:
  Depreciation and amortization            128,895       148,133
  Changes in assets and liabilities:
   Decrease in restricted cash              31,934        12,671
   (Increase) decrease in accounts
    receivable                             (10,504)        2,497
   Increase in other assets                (18,469)      (18,093)
   Increase in accounts payable - trade     51,267        35,374
   Increase in accounts payable -
    related parties
                                            12,102        27,531
   Increase in interest payable             33,238       164,471
   (Decrease) increase in accrued
    liabilities                             (1,661)          821
   Increase in tenant security deposits     12,240         1,100
                                          --------      --------
Net cash provided by
 operating activities                        1,488        11,255
                                          --------      --------
Net cash used in investing activities:
 Capital expenditures                            0       (15,377)
                                          --------      --------
Net cash used in investing activities            0       (15,377)
                                          --------      --------
Increase (decrease) in cash and cash
 equivalents                                 1,488        (4,122)
Cash and cash equivalents at
 beginning of period                         6,474        13,077
                                          --------      --------
Cash and cash equivalents at
 end of period                            $  7,962      $  8,955
                                          ========      ========

The accompanying notes are an integral part of these financial statements.

<PAGE>



                    DIVERSIFIED HISTORIC INVESTORS
                    ------------------------------
                 (a Pennsylvania limited partnership)

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              ------------------------------------------
                              (Unaudited)


NOTE 1 - BASIS OF PRESENTATION
------------------------------

We  have  prepared  the  consolidated financial statements  without  a
review or audit by an independent auditor. The new independent auditor
will  review the consolidated financial statements and the  Registrant
will endeavor to proceed with this audit as expeditiously as possible.
No   auditor   has  opined  that  the  "unreviewed"  and   "unaudited"
consolidated  financial  statements present fairly,  in  all  material
respects,  the financial position, the results of operations  or  cash
flows  of  the Registrant for the periods reported in accordance  with
generally accepted accounting principles.

The "unreviewed' and "unaudited" consolidated financial statements  of
Diversified  Historic Investors (the "Registrant") and  related  notes
have  been  prepared  pursuant to the rules  and  regulations  of  the
Securities  and Exchange Commission.  Accordingly, certain information
and  footnote  disclosures normally included in  financial  statements
prepared  in accordance with generally accepted accounting  principles
have been omitted pursuant to such rules and regulations.

The  information furnished reflects, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for  a
fair presentation of the results of the interim periods presented.


NOTE 2 - EXTRAORDINARY GAIN
---------------------------

During  2003, the remaining Smythe Store units were foreclosed by  the
mortgage   holder   resulting  in  an  extraordinary   gain   on   the
extinguishment of debt of $1,929,755.


Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations
          -----------------------------------------------------------

     (1)     Liquidity

              As  of  September  30,  2004,  Registrant  had  cash  of
approximately  $7,962.   Cash  generated  from  operations   is   used
primarily  to fund operating expenses and debt service.  If cash  flow
proves  to  be insufficient, the Registrant will attempt to  negotiate
with   the  various  lenders  in  order  to  remain  current  on   all
obligations.  The Registrant is not aware of any additional sources of
liquidity.

              As of September 30, 2004, Registrant had restricted cash
of  $46,746  consisting primarily of funds held as security  deposits,
replacement reserves and escrows for taxes. As a consequence of  these
restrictions as to use, Registrant does not deem these funds to  be  a
source of liquidity.

              In  recent years the Registrant has realized significant
losses,  including  the  foreclosure of  six  properties  due  to  the
properties'  inability to generate sufficient cash flow to  pay  their
operating  expenses  and  debt  service.   The  Registrant  has  first
mortgages  in place in each of its remaining two properties  that  are
cash-flow  mortgages, requiring all available cash  after  payment  of
operating expenses to be paid to the first mortgage holder.  Therefore
it  is  unlikely that any cash will be available to the Registrant  to
pay  its  general and administrative expenses, to pay debt service  on
the past-due subordinate mortgage with respect to the Third Quarter or
to  pay any debt service on the two accrual mortgages with respect  to
Wistar Alley.

              It is the Registrant's intention to continue to hold the
properties  until  the  lenders on the past due subordinate  mortgages
seek payment and the properties are foreclosed, or the market value of
the  properties increase to a point where they can be sold at a  price
which is sufficient to repay the underlying indebtedness.

              Since  the  lenders have agreed either to forebear  from
taking any foreclosure action as long as cash flow payments are  made,
to accrue all debt service in lieu of payment, or have (in the case of
Third Quarter) not moved to declare a default for a substantial period
of  time  after the mortgage due date, the Registrant believes  it  is
appropriate to continue presenting its financial statements on a going
concern basis.


     (2)     Capital Resources

             Any capital expenditures needed are generally replacement
items  and  are  funded  out  of cash from operations  or  replacement
reserves,  if  any.   The Registrant believes that historical  capital
expenditure  levels  are  indicative of capital  requirements  in  the
future  and accordingly, does not believe that it will have to  commit
material  resources to capital investment for the foreseeable  future.
If  the  need for capital expenditures does arise, the first  mortgage
holder  for Third Quarter and Wistar Alley has agreed to fund  capital
expenditures at terms similar to the first mortgage.


     (3)     Results of Operations

              During the third quarter of 2004, Registrant incurred  a
net loss of $56,342 ($4.80 per limited partnership unit) compared to a
net loss of $100,999 ($8.61 per limited partnership unit) for the same
period  in  2003.  For the first nine months of 2004,  the  Registrant
incurred a net loss of $237,554 ($20.26 per limited partnership  unit)
compared  to  a  net loss of $363,250 ($30.98 per limited  partnership
unit) for the same period in 2003.

             Rental income decreased $8,258 from $142,501 in the third
quarter  of  2003 to $134,243 in the same period in 2004 and  for  the
first  nine  months of 2003 decreased $51,351 from  $429,871  for  the
first nine months of 2003 to $378,520 for the same period in 2004. The
decreased  in rental income from both the third quarter and the  first
nine  months of 2003, compared to the same periods in 2004, is due  to
the foreclosure of the Smythe Stores on October 2, 2003 and a decrease
in  average occupancy at the Third Quarter Apartments (98% to 94%) and
Wistar Alley (94% to 88%).

                 Rental  operations  expense  increased  $18,468  from
$62,386 in the third quarter of 2003 to $80,854 in the same period  in
2004  and  for  the first nine months increased $26,366 from  $247,969
during  the first nine months of 2003 to $274,335 for the same  period
in 2004. The increase in rental operations expense from both the third
quarter  and  the  first nine months of 2003,  compared  to  the  same
periods  in  2004,  is  due  to an increase  in  maintenance  expense,
utilities   expense,  insurance  expense,  and  legal  and  accounting
expenses,  partially offset by a decrease in leasing  commissions  and
miscellaneous operating expense. The decrease in rental operations  at
the Smythe Stores is due to the foreclosure of the building on October
2,  2003. The increase in maintenance expense is due to an increase in
maintenance  service and plumbing and electrical  expenses  at  Wistar
Alley.   The  increase in utilities expense is due to an  increase  in
electricity charges at Wistar Alley. The increase in insurance expense
at  the Third Quarter Apartments is due to changing market conditions.
The increase in legal and accounting expenses is due to the payment of
accrued  accounting fees at the Third Quarter Apartments. The decrease
in  leasing commissions at the Third Quarter Apartments is  due  to  a
decrease   in  apartment  turnover.   The  decrease  in  miscellaneous
operating  expense  is  due  to  a  decrease  in  office  expense  and
Visa/MC/MAC charges at the Third Quarter Apartments.

              Interest expense decreased $65,144 from $132,043 in  the
third  quarter  of  2003 to $66,899 in the same  period  in  2004  and
decreased $183,962 from $397,802 for the first nine months of 2003  to
$213,840  for  the  same  period in 2004. The  decreased  in  interest
expense from both the third quarter and the first nine months of 2003,
compared to the same periods in 2004, is due to the foreclosure of the
Smythe Stores on October 2, 2003.

               Losses  incurred  during  the  third  quarter  at   the
Registrant's properties were approximately $57,000, compared to losses
of  approximately $91,000 for the same period in 2003. For  the  first
nine  months  of  2003 losses incurred at the Registrant's  properties
were  approximately  $212,000  compared  to  losses  of  approximately
$322,000 for the same period in 2003.

          In the third quarter of 2004, Registrant incurred no loss at
the  Smythe Stores condominium complex, compared to a loss of $44,000,
including  $6,000  of depreciation expense, in the  third  quarter  of
2003.   In the first nine months of 2004, Registrant incurred no loss,
compared  to  a  loss of $144,000, including $19,000  of  depreciation
expense, for the same period in 2003.

               On   October  2,  2003,  the  remaining  Smythe  Stores
condominium units were foreclosed by the mortgage holder.  As a result
the  Registrant recognized an extraordinary gain on the extinguishment
of  debt  in the amount of $1,929,755, which is the excess of debt  on
the property over the net book value of the asset.

              In the third quarter of 2004, Registrant incurred a loss
of  $33,000  at  the  Third Quarter Apartments, including  $20,000  of
depreciation and amortization expense, compared to a loss of  $29,000,
including  $20,000 of depreciation and amortization  expense,  in  the
third  quarter of 2003.   The increase in loss from the third  quarter
of  2003,  compared to the same period in 2004, is due to the decrease
in  rental  income combined with an increase in insurance expense  and
legal  and accounting expenses.  The decrease in rental income is  due
to  a  decrease  in average occupancy (98% to 94%).  The  increase  in
insurance expense is due to changing market conditions.  The  increase
in  legal  and  accounting expenses is due to the payment  of  accrued
accounting fees.

                      For  the  first nine months of 2004,  Registrant
incurred  a  loss  of  $98,000 including $59,000 of  depreciation  and
amortization expense, compared to a loss of $105,000 including $59,000
in  depreciation and amortization expense for the same period in 2003.
The  decrease in loss from the first nine months of 2003  compared  to
the  same  period in 2004 is due to a decrease in leasing  commissions
and   miscellaneous  operating  expense.   The  decrease  in   leasing
commissions is due to a decrease in apartment turnover.  The  decrease
in  miscellaneous  operating expense is due to a  decrease  in  office
expense and Visa/MC/MAC charges.

              In the third quarter of 2004, Registrant incurred a loss
of  $24,000  at  Wistar Alley, including $23,000 of  depreciation  and
amortization expense, compared to a loss of $18,000, including $23,000
of depreciation and amortization expense in the third quarter of 2003.
For  the  first  nine months of 2004, Registrant incurred  a  loss  of
114,000  including  $70,000 of depreciation and amortization  expense,
compared  to  a loss of $73,000 including $70,000 in depreciation  and
amortization  expense for the same periods in 2003.  The  increase  in
loss  from  both  the  third quarter and first  nine  months  of  2003
compared  to the same periods in 2004 is due to a decrease  in  rental
income  combined with an increase in maintenance expense and utilities
expense.   The  decrease in rental income is  due  to  a  decrease  in
average  occupancy (94% to 88%).  The increase in maintenance  expense
is  due  to  an  increase  in  maintenance service  and  plumbing  and
electrical expenses.  The increase in utilities expense is due  to  an
increase in electricity charges.


Item 3.   Quantitative and Qualitative Disclosures About Market Risk
          ----------------------------------------------------------

             All of our assets and liabilities are denominated in U.S.
dollars, and as a result, we do not have exposure to currency exchange
risks.

             We do not engage in any interest rate, foreign currency
exchange rate or commodity price-hedging transactions, and as a
result, we do not have exposure to derivatives risk.


Item 4.    Control and Procedures
           ----------------------

              We  maintain disclosure controls and procedures that are
designed  to ensure that information required to be disclosed  in  our
Securities  Exchange  Act  of  1934 reports  is  recorded,  processed,
summarized  and reported and that such information is accumulated  and
communicated  to  our  management, including  our  managing  partner's
principal  executive  officer  and  principal  financial  officer,  as
appropriate, to allow timely decisions regarding required  disclosure.
In  designing  and evaluating the disclosure controls and  procedures,
our  management recognized that any controls and procedures, no matter
how  well designed and operated, can provide only reasonable assurance
of  achieving  the  desired  control objectives,  and  our  management
necessarily was required to apply its judgment in evaluating the cost-
benefit relationship of possible controls and procedures.

             Under the supervision of our managing partner's principal
executive officer and principal financial officer we have carried  out
an  evaluation of the effectiveness of our adopted disclosure controls
and  procedures  as of the end of the period covered by  this  report.
Based  upon  that  evaluation, our managing  partner's  president  and
treasurer  concluded that our disclosure controls and  procedures  are
effective.

              There  have been no significant changes in our  internal
controls over financial reporting that has materially affected, or  is
reasonably  likely  to  materially affect, our internal  control  over
financial reporting during our most recent fiscal quarter.

<PAGE>


                      PART II - OTHER INFORMATION
                      ---------------------------

Item 1.   Legal Proceedings
          -----------------

              To  the best of its knowledge, Registrant is a not party
to,  nor  is any of its property the subject of, any pending  material
legal proceedings.


Item 4.   Submission of Matters to a Vote of Security Holders
          ---------------------------------------------------

              No  matter  was submitted during the quarter covered  by
this report to a vote of security holders.


Item 5.   Other Information
          -----------------

             None.


Item 6.   Exhibits
          --------

   (a)    Exhibit Number        Document
          --------------        --------

              3                 Registrant's    Amended     and
                                Restated Certificate of Limited
                                Partnership  and  Agreement  of
                                Limited Partnership, previously
                                filed as part of Amendment  No.
                                2  of Registrant's Registration
                                Statement  on  Form  S-11,  are
                                incorporated     herein      by
                                reference.

            21                  Subsidiaries of the  Registrant
                                are    listed   in   Item    2.
                                Properties   on   Form    10-K,
                                previously      filed       and
                                incorporated     herein      by
                                reference.

            31 (Not attached)   General     Partners    Opinion
                                Certification
                                (To   be   filed  with  amended
                                10Q/A)

            32 (Not attached)   Certification  Pursuant  to  18
                                U.S.C. Section 1350, As Adopted
                                Pursuant to Section 906 of  the
                                Sarbanes-Oxley Act of 2002
                                (To   be   filed  with  amended
                                10Q/A)

<PAGE>

                              SIGNATURES
                              ----------


      Pursuant to the requirements of the Securities Exchange  Act  of
1934,  Registrant  has duly caused this report to  be  signed  on  its
behalf by the undersigned, thereunto duly authorized.

Date:  August 31, 2005   DIVERSIFIED HISTORIC INVESTORS
       ---------------
                          By: Diversified Historic Advisors, General
                               Partner

                               By: EPK, Inc., Partner

                                   By: /s/ Spencer Wertheimer
                                      -----------------------
                                      SPENCER WERTHEIMER
                                      President  (principal  executive
                                      officer,   principal   financial
                                      officer)   of  the  registrant's
                                      managing partner, EPK, Inc.

<PAGE>