Need Advice - Electrical Code Violation

[Kevin Barry]

I'm a first time investor, and I'm looking at a fourplex with the following numbers:

- Purchase Price - $175,000 (includes $15,000 in cash back referenced below) 

- Monthly Rent - $2,125

- Monthly Cash Flow - $1,158

- Cash on Cash ROI - 28.5%

There are a few minor repairs (replace a water heater, fix flooring, etc.) that I'll need to take care of (~$5K).

The main issue with the house is the electricity is not up to code (includes replacing the fuse box, FPE brand electrical panel and rewiring). My realtor had an electrician come out and provide a quote on what it would cost to get up to code, and he estimated $30K, but he also said that it is working fine and "if it were up to him" he would not do anything until absolutely needed (which could be in 20 years if everything is still functioning properly).  I'd like some cash back on the purchase to protect myself, but right now the owner only is willing to give $15K. 

How would you handle this? Has anyone run into this issue before? Looking for advice because ROI is great!

Thanks!

Kevin