We have encountered companies which will not underwrite knob-and-tube or aluminium wiring {which can be perfectly safe}, but never one that refused paper/fabric-covered wiring.What does your insurer classify as "fabric/cloth covered wiring" {I cannot really see the pictures closely enough).  

BUY quality SINGLE FAMILY homes SFH.that appreciate.4.Always do a home inspection using a certified home inspector ( with utilities turned on) and separately  hire an A.C. company to thoroughly inspect the state of the HVAC ( it might be blowing cold air today , which passes a home inspectors test) but the coils might be shot and the system riddled with leaks and crushed air handling tubes.

I used 2 tubes of caulking to cover over the massive rot lurking under the peeling flooring to pass the appraisal. 

I met the daughter of the seller there with the seller in a hospital bed with tubes all over the place; most likely on her death bed.

"Even porn stars start out as virgins."  

In older houses you have to be weary of lead paint, asbestos, knob and tube wiring and plumbing!

Hooks up should include dryer exhaust venting.. not easy to add in all applications if not already in,, and inspections don't like flexible accordian type exhaust usual requirement is the standard solid sheetmetal tube. 

If you buy post-1978 you likely miss all of those lead-based paint, galvanized plumbing, knob-and-tube wiring, asbestos, etc. issues.

Almost all the wiring was late 20th Century, no aluminum or weird knob and tube stuff.

If just fin and tube baseboard get a basic a cast iron boiler from say weil mclain.