Updating the electrical in a house
Besides replacing the wiring, you should also consider replacing your electrical service, which includes your main panel and any subpanels.
If you are refeeding an outlet or a light switch and you can't reuse the old cable's hole, a new hole is necessary.
You may have to leave the wiring in the walls intact and only replace the cable in the attic or crawlspace.
The majority of the new cable will likely be run through the attic and crawlspace before it enters the walls.
This kind of remodeling is easier to do in a newly purchased home than a well lived-in one.
Do not attempt to replace your own wiring unless you are experienced in electrical construction.