To update Knob and Tube... or not?

[Greg Gangle]

Hi BP friends. I’m going to be closing on a property that requires the entire home to be upgraded from knob and tube. 

Here’s the numbers 

Purchase Price $44K

Knob and Tube upgrade $13K

Insurance premium $2246/year (with k & t- usually around $1200 without)

Rental income $1100/month

I’m a buy and hold type of person. Why question is whether to upgrade the knob and tube now or leave it. I’m aware it’s difficult selling the property with it in however I wouldn’t plan on selling it anytime soon and can do it later. 

My gut says do it now and be done with it. 

Thoughts? Thanks in advance