Is it worth refinancing this ol' house that I inherited?

[Joseph Burke]

I recently inherited a property free and clear. It cashflows roughly ~700 a month right now, but has had a ton of deferred maintenance. My relative was something of a slumlord, and ran some of his properties "off the books." The fact that it doesn't have insurance keeps me up some nights, but for the most part the check every month has been a great help in my finances.

Because I own it free and clear, and rates are great right now, I decided to look into a refinance. The Inspector came back with about 20-25k worth of repairs--including replacing the old knob wiring that the house apparently still had (Which he pegged at about 12k.)

I'd say the property is worth 60k-70k at most and is not in a neighborhood that will probably ever appreciate. C+ at best.

Is it worth putting 25k of rehab into a property that most likely won't appreciate, in order to get out about 40k-50k in a refinance, so I can re-invest? 

Or would it be possible for me to somehow get financing on the house without having to replace the knob wiring? That would drop the rehab cost drastically. 

Any ideas or feedback are greatly appreciated.