Does Insulation Add Equity?

[Account Closed]

Hey BP. I am the owner of a 3 family building in the Greater Boston Area. I bought the building in June and will be looking to do a cash out refinance as soon as I can  to extract the ~45k I put into it and dump it into another project.

I got a MassSave (energy savings program in Mass) audit done, and they quoted around ~10k for insulation. Through the program, the insulation is 90% off, and then I can take an additional $750 off for a knob / tube inspection. So overall, I can get the whole building insulated for $250, which seems like a no brainer.

The catch is that I have to remove some knob and tube wiring that they found in the basement before the insulation can be done. My quote is $1895 for the following: rewire affected areas of basement and Unit 1 that have knob and tube. 8 outlets, 5 lights, 5 switches. This is basically the price for 2 licensed guys to do work in the place for the whole day.

My questions are:

1.) Is this electric quote too high? I know there's not a lot of detail here, but hopefully people have ballpark estimates. In the past I've consulted my friend (who is a licensed electrician himself) about the quotes I got, and he said my guy is fair.

2.) Is it worth the ~$2150 to get the $10k insulation job done? Will it actually add equity?