Do you replace nob and tube wiring

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I am currently rehabbing a property that I am wanting to BRRRR. I had the city come out to the property to help me understand the code if I touch/work on different items. currently in the house there is nob and tube wiring. the inspector said if I leave it alone I will not have replace it. I can simply frame around the metal conduit with 2x2 and frame out the basement walls. if I want to hide the wiring in the existing walls I would need to replace the wiring. I have to tear down the basement ceiling for several reasons so the floor joists will be exposed.

My question is for when I go to have it appraised will the new wiring make up the cost of the investment in new wiring?

thank you in advance for any advice.

I do BRRRR myself. I would always replace any knob and tub in any areas I was renovating and any areas that are accessible. The one area that sometimes isn't easily accessible are first floor ceilings but those are not a high priority in my opinion.

It isn't about value as much as safety. Updated wiring will be safer because there will be a ground wire and because the wire insulation will be in new condition and modern codes require junctions to be in boxes. Also keep in mind if there is visible knob and tube, some insurance companies won't insure the property. 

In addition to safety, houses with knob and tube often don't have sufficient outlets for tenants. Running extension cords for everything isn't just unsightly, its a tripping hazard etc. 

So, I would replace as much as I could because once your renovation is complete you won't want to do it down the road.