Are older homes with known issues still worth the investment?

[Matt Mcdavis]

Finally found an off market duplex in NJ that the numbers look good on for a BRRRR however it is a much older home built in the early 1900s with some problems. I already know knob and tube is all throughout the property which should run about 30k to replace. There's also a steam boiler with radiators as the heating source that I have a feeling I will need to replace to just save myself the hassle of repairs in the long run. This could run another 10-40k depending on the solution used (mini splits or HVAC). The good thing is that the roof is only 10 years old, hot water heaters 2 years old, and all subfloors have been replaced in the last 5 years along with asbestos removal throughout.

I know this renovation could be a lot for a first property but I have the appropriate contacts that I believe can get this all done (fixes above and cosmetic updates - 2 gut job kitchens and bathrooms) for around 150-175k max which would worst case lead to break even at appraisal and pull out that Reno cost put in. My biggest concern is once the walls are ripped apart to make the replacements that more issues will be found. For anyone thats had any types of deals like this with older homes and big ticket issues known right off the bat has it still been worth it or is this something to just run from?