Need help after inspection. Knob and tube and other issues.

[Yuka F.]

Hi there,

I am very new to this field but after five months of shopping, I am under a contract with SFH and got the inspection last week. I am already overwhelmed and need experienced investors' help.

The house detail: 1930 built. 2bed/1bath, 1060SqFt+basement same size. List price 78K. Sold as-is.

Three major things that I think is 

1) Knob and tube wiring in the entire house. In the basement it is visible. Numerous open wire splices/loose junction boxes. There is copper Romex. 

My inspector told me that at some point, the new (?) wiring was added to old K&T and there is an electrical panel showing 100Amps. 

My question is "Is it better to replace it in terms of safety concerns and energy efficiency? I was told it should be around 10K to replace all the wire and rewire it, which is very surprising to me. If I decide to leave it as is, I guess at some point, I should replace it and this was an unexpected finding before the inspection. So is it better to ask the seller to reduce the price? Should I get a licensed electrician inspected before closing?

2) Plumbing has not been tested. 

There was a slow water leak at the plumbing line next to the water heater in the basement and the water company did not turn on the water. So the inspector could not check the plumbing at all. But he told me that from the visible standpoint, it looked OK and the seller reduced $1000 for the problem it may happen related to plumbing.

Should I do a licensed plumber to check before closing?

3)Furnace did not operate when thermostat set, have evaluated, no heat to house upon arrival.

Possibly due to thermostat problem but unknown. The inspector recommended I get a licensed HVAC engineer to check it.

Other things are 

---Open mortar joists/loose spalled brick at the chimney, loose shingles on dormer

---Several windows painted shut sash cords missing, non-operable, rear deadbolt "keyed only" should have thumb turn for emergency egress

loose/ flaking paint, possible lead-based paint

---Cracked concrete at entry porch,--missing guard rail at rear steps,--several downspouts missing splash blocks/draining too close to the house

---Grading is flat to sloping toward foundation additional top soil/grade modification may be needed

---Suggested GFCI protected outlets at all wet locations as a safety improvement

---Discoloration on floor joists in the basement, have evaluated for cleaning, possible treatment

---Garage needs to be repaired completely.

---Attic was not inspected due to inaccessibility

---and minor cosmetic things in the kitchen and bathroom

I am OK with the cosmetic rehab and I estimated the cost of repair around 16K but I did not know about KnT and water leak, and possible furnace problem. 

Are these inspection report typical for an old house like this age or is any of this a deal-breaker? The seller is not going to repair anything.

Thank you in advance!