Firstly, it depends where it is and how much you are buying it for.
e.g. if it is for land value - then who cares about a building report like this.
You have highlighted bubbling paint on a ceiling - no big deal really
and $16K for a new roof......Look it may or may not need a new roof, but what really gets on my goat are building reports that are self promoting the inspector's own building company to fix "faults" discovered.
In my experience, many of these "quotes" are 3 times the price of a different contractor. If you proceed, I'd be getting 3 quotes.
In general terms, if I saw a report like this though, I would probably walk away - yes. But then again, I would not have ordered a report on a place like this - I can see bubbly paint, undulating floors and dates on HWS's for myself.
was this place going to be your ppor or ip being a 1940 home would expect some building problems biggest concern seems to be the roof if you were to go through I would either be reducing the purchase price of the costs of the roof 16k + a few more k.
all houses move even new ones really it is up to you