I would be calling an electrician before doing anything with it, and also before doing anything in your basement where the pipe hole is. I see bad wiring there, stapled to wood, and in that fireplace chace, I see knob and tube, which definitely needs to be checked.

Thank you. The wiring has been checked and will be replaced as soon as I can afford it! I've had a bunch rewired but there are still existing sections of knob and tube unfortunately.

Google 'Creative Home Engineering' in Arizona.

You said you are having an electrician come to examine the knob and tube wiring, why not have him install an electric log set? Repair the interior walls, go black for interior color. Also paint the red ceramic tiles black.

This one is Duroflame

I replace and fix whatever is crumbling and unsafe. Then i would reseal and cover the darn thing. Just takes up space and you lose a wall for decorating.