The cloth wrapped 14-2 is in decent shape almost everywhere, but has no ground, so unfortunately it simply has to go.
In one place the line feeding a receptacles is just hanging free, no staples, waiting for some schmuck crawling under the house to get caught on it. Near the breaker panel I find the 220 line feeding the AC condenser has been tapped into with a few loose strands of 12-2 wire to feed the outdoor receptacle, and the splice is not in a box, just hanging out with some electrical tape over it.
Good news is since the house is on it's second wiring, most of the receptacles have been wired from underneath, meaning I have holes to fish the new line through, that just means I only have to do the fenangling of adding a few more receptacles.
Which is why permits and inspections ARE a good thing. To ensure electrical work is done properly and safely along with your house insurance not being cancelled.