This house was built in 1884 for Louis Perel by M Gooding & Son of Buckingham Street, Richmond.  The earliest rate book entries for it describe it as having six rooms on land 22 by 100 feet.  It was built on part of the land on which had once stood the Methodist New Connexion Church, built in 1868.  In 1877 the New Connexion Church united with the Weslyans and the church became redundant and was pulled down soon after.
Louis Perel was the son of Elias and Elizabeth Perel. He grew up in Ararat where Elias had a business as a draper and clothier.  Elias, born in Poland, died in 1867.  Elizabeth managed to keep the business going and to look after her four young children for a few years before selling the business in 1871.  She moved with the family to Melbourne.  For some years they rented a house in Hoddle Street, Richmond and Louis started a boot manufacturing business in Fitzroy known as Perel and Sharwood.  Soon he had sufficient money to finance the building of their own house, which they called Elsinore. 
In February 1888 The Argus ran a small advertisement:  ‘H. M. PARLETT, architect, 76 Charles-street, Fitzroy, invites Tenders for a two-story brick Residence, Grey-street, East Melbourne, for Mrs. Perell.’  This initially appeared in the rate books as a one room house next door to No 8 but not given a number of its own. The following year it has two rooms.  It was on land of 22 by 100 feet. Looking at the 1897 MMBW map of the area it appears that No 8 was built with a footprint typical of a terrace house but that a small addition had been made to the rear of the property on the eastern side.  Perhaps the original intention had been to build a twin to the existing house but the end result was no more than a granny flat.  
The Perels lived at Elsinore, taking in boarders with the help of a general servant, until c.1903 when it was sold to Catherine Burns, who quickly added to her portfolio with the purchase of No 10 and also the land on the corner of Hoddle Street which, at the time, had on it only a brick stable, a weather-board loose box and a man’s room.  Catherine Burns is a mystery woman.  She does not appear in any other records such as electoral rolls or post office directories.   She did not advertise rooms to rent at the house.  The following item published in Labor Call in 1917 may have the explanation for her apparent anonymity:
Two stylish bagnios — 'Palmerston House,' at Carlton, and 'Elsinore,' at East Melbourne— have been raided by the police. These houses of ill-fame have been patronised by the elite and aristocracy of Melbourne, who have parted with as much as £5 for the gratification of their sensual lust, and have become a source of annoyance to the sturdy democrats of Carlton who dwell within the vicinity of one of these merry mansions of Delilah.The Post Office Directories do not mention Catherine Burns and instead list Amy Clifton as the occupant of 8 Grey Street.  Searching Trove under her name brings up a lot more detail about activity at Elsinore, see link below.
A few months later all the properties were advertised for auction. Lot 2 was described as:
 – GREY STREET, No. 8.  Two-story Brick Residence, with Verandah and Balcony.  Containing Entrance Hall, Nine Rooms, Vestibule, Bathroom, Pantry, Laundry (Fitted).  The House has Recently been Papered and Painted, and is in Good Order.  Yard is Asphalted. the Land has a Frontage of 44ft. by a Depth of 98ft. Back to a Made Right-of-way. Possession in a Month can be Arranged.
Elsinore sold for  £1060. The next owner according to the rate books was Catherine Kennedy who was a member of the family who then ran the grocery store at 17 Gipps Street, East Melbourne. According to the electoral rolls she lived in the granny flat at No 6 while her son, Ernest Francis, a chemist, lived at No 8. 
Sometime in the early 1930s Catherine extended the granny flat forward to the street and it became a five roomed house from then on known as No 4. She continued to live there while renting out No 8, which became No 6.  By 1940, possibly because of ill-health, Catherine had moved out and both houses were rented.  She died in 1948 at the New Boundary Hotel, Hoddle Street, East Melbourne, the home of her daughter, Vera Lee. 
The two houses were sold to different buyers. No 6 was bought by James Michael Sadler and his wife, Catherine Mary Sadler. Jim Sadler at the time of their marriage in 1914 was a well known and popular footballer, playing 135 matches for Collingwood. At the time of the purchase he was working as a gas worker and living at 146 Clarendon Street, East Melbourne.  They continued to live there and rent the house out for the next five years until moving in themselves.  Jim died in 1975 but Catherine continued to live at No 6 until her own death in 1979.
No 4 meanwhile was bought by Richard Meehan and his wife, Pauline. Pauline, nee Cooney, had grown up under the care of her aunt around the corner at Doontallie, 1121 Hoddle Street, East Melbourne. Richard died in 1970 but Pauline continued to own the Grey Street house until 1976.
Their son, also Richard, believes that the lounge room of No 4 was at one time the billiard room for No 6.