@David PetersenI actually have some skills as a contractor (I have run tractors & excavators, been an electrician and plumber and done a lot of random side jobs) so that might be the way for me to go! 

@Afrothiti ManolisI would start speaking to electricians on separating the units and installing another meter.

However I have now had 2 local and licensed electricians walk my property under contract and tell me to leave the knob and tube alone, “Don’t even think about redoing it, there’s nothing wrong with it and it’s not worth the trouble”.

I would just have the electrician connect them to your garage panel. 

We also used an electrician that seems to be pretty good - he's about to come by tomorrow to do some additional work.

Father in law is a master electrician so brought outdated electrical up to code.

The issue is when you have a breaker of 30 amps and the knob and tube wire is 10 or 20 amps that can be a fire hazard. i am no electrician but I have been involved with thousands of transactions of which at least half were built when knob and tube was produced and I have never had any issues if the wiring was in good condition and not overheated by the wrong fuse or breaker.

I call the company back. they have their electrician call.

We had neighbors in Suffolk who also bought houses in need of bigger repairs, and lived in the house while improving them...but he was a "sparky," an electrician, and did most of the work himself. 

The buyer wants us to redo the electrical because it is "old", it is fine and passed city inspections and our electrician said it is fine also.