Stone foundations, cast iron sewer main stacks, & outdated electrical systems (knob & tube) are a few things to watch for.

It's unsettling that we only get part of the story and yet EVERYONE here is giving their "fully informed" advice - no wonder our country is going down the tubes:(@Trent Lee giev us the FULL story please, specifically:1) What exactly was the damage?

It has knob & tube wiring and galvanized plumbing. 

Lets say you do an inspection and discover there is a huge amount of active knob and tube that you didn't know about.

For example knob and tube wiring or non-conforming zoning with no potential for rebuild.

No lender can stay in business only making 1,800 a file they would go down the tubes quite quickly.  

knob and tube with fuses or romex with breakers 5.

You can probably find a good mentor, read books & watch you tube to learn all you need to know. 

All of the walls of the 600 square foot room were covered, in most places ceiling to floor, with women cut out of hard core porn magazines.

I would think it would be especially if you have a place on the river where you could start tubing form the back yard.