He said the electrical system is still using "knob and tube" wiring.

Okay you guys- I give What "You tube Username" Am I supposed to put in that box on my profile to link it? 

Wholesaling101 You Tube ChannelKent Clothier – You Tube Memphs Invest channel

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All thanks to LAST tenant that heated the house with elec space heaters on the crappiest knob and tube wiring you ever saw on 2 circuits for about whole house. 

Replace the dip tube too.

They can also help you make a rehab budget.In my experience, the major things that you are going to want to be aware of are:Structural or Foundation problemsTermites or other wood destroying organismsMoldType and age of wiring (knob and tube, romex, fuse box, 80 amp service, 100 amp service, 200 amp service, is it grounded properly, etc.)Condition, age, and type of plumbing (Galvanized, PVC, pex) as well as water source (city water vs well water)Type and Age of Sewer system (Clay tile sewer line, PVC sewer line, septic, etc.)Pets control issues (bed bugs, roaches, fleas, etc.)Condition of RoofCondition of MechanicalsCondition of WindowsI think those are the most concerning ones.

The lender was back to us in four hours (before their submission deadline), which tells me we were too high and could have gone in 4K less and still got the property.After walking the property this morning, it needs a lot of work but less than I was anticipating:1) Electrical: Entrance to both units needs to be separated and the "half story" in the upper unit still has active knob-and-tube.  

Wholesaling101 You Tube ChannelKent Clothier – You Tube Memphs Invest channel

There is a you tube video that might help.