But, I don't think I'd want a surgeon trained in the late 1800's to operate on me today.

A real property trade or business is a trade or business that does any of the following with real property.Develops or redevelops it.Constructs or reconstructs it.Acquires it.Converts it.Rents or leases it.Operates or manages it.Brokers it.http://www.irs.gov/publications/p925/ar02.html#en_US_2012_publink1000104591

Here's a quick story: I was still in banking as a commercial lender and I was doing a loan to build a surgery center for two surgeons.

Flashings shall be reconstructed in accordance with approved manufacturer's installation instructions.

Given the industry that I am in, I have a large list of subcontractors, asbestos abatement contractors, and other connections for reconstruction.

While it may be correct that houses from the 1900's and 1920's may require extensive reconstruction and structural design due to its substandard or deteriorated condition, the philosophy for some Realtors/investors is 'the older the property, the better'.

Your property is listed at 50k but the 85k assessment seems to indicate that you could be looking at a $150k reconstruction costs.Best Choice?

Are $4.5 buyers tear down re-construct buyers in Newport, or W2 mortgage holders making ends meet with an E-Class an F150 and a day maid(???)

This might be to get rid of a headache, or considered a tear down for reconstruction. 

Look at the income of most surgeons vs. most realtors.