Looking for experienced investor / GC input on rehabbing an in-law unit

Looking for experienced investor / GC input on rehabbing an in-law unit

Member since 2022 · 5 posts · 3 votes

We’re evaluating a property that is a legal 2-unit with an in-law suite and would appreciate feedback from those who’ve dealt with similar setups.

Current conditions:

  • Legal 2 units + finished in-law suite

  • Only 2 gas meters currently

  • In-law ceiling height is approx. 6’2”

  • In-law already has a kitchen, bathroom, and bedroom

  • No dedicated heating or cooling for the in-law unit at the moment

What we’re considering:

  • Installing central air / HVAC for all 3 units

  • Potentially adding a 3rd gas meter

Looking for insight on:

  • Code and permitting considerations (especially around ceiling height)

  • Pros/cons of tying the in-law into shared HVAC vs separate systems

  • Whether adding a 3rd gas meter is typically worth it (cost vs rentability/value)

  • Red flags you’ve run into with in-law units from a resale, appraisal, or inspection standpoint

Would love to hear from anyone who’s rehabbed, owned, or sold properties with in-law units — especially in older buildings.

Thanks in advance.

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Member since 2018 · 1k+ posts · 1k+ votes
8mo
Quote from @David Tang:

We’re evaluating a property that is a legal 2-unit with an in-law suite and would appreciate feedback from those who’ve dealt with similar setups.

Current conditions:

  • Legal 2 units + finished in-law suite

  • Only 2 gas meters currently

  • In-law ceiling height is approx. 6’2”

  • In-law already has a kitchen, bathroom, and bedroom

  • No dedicated heating or cooling for the in-law unit at the moment

What we’re considering:

  • Installing central air / HVAC for all 3 units

  • Potentially adding a 3rd gas meter

Looking for insight on:

  • Code and permitting considerations (especially around ceiling height)

  • Pros/cons of tying the in-law into shared HVAC vs separate systems

  • Whether adding a 3rd gas meter is typically worth it (cost vs rentability/value)

  • Red flags you’ve run into with in-law units from a resale, appraisal, or inspection standpoint

Would love to hear from anyone who’s rehabbed, owned, or sold properties with in-law units — especially in older buildings.

Thanks in advance.

Was the in-law apt legal AND done with permits when done? Makes getting variances a lot easier.

consider renting to a larger family the in-law and the apt it connects to as one unit? Nothing wrong with having a kosher kitchen.


HVAC is going to be controlled by whichever apt has the thermostat. That person is also paying for all the electricity for running it. Use window units?

Third gas meter will require inspections and probably a separate furnace. 
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  • Member since 2018 · 1k+ posts · 1k+ votes
    8mo
    Quote from @David Tang:

    We’re evaluating a property that is a legal 2-unit with an in-law suite and would appreciate feedback from those who’ve dealt with similar setups.

    Current conditions:

    • Legal 2 units + finished in-law suite

    • Only 2 gas meters currently

    • In-law ceiling height is approx. 6’2”

    • In-law already has a kitchen, bathroom, and bedroom

    • No dedicated heating or cooling for the in-law unit at the moment

    What we’re considering:

    • Installing central air / HVAC for all 3 units

    • Potentially adding a 3rd gas meter

    Looking for insight on:

    • Code and permitting considerations (especially around ceiling height)

    • Pros/cons of tying the in-law into shared HVAC vs separate systems

    • Whether adding a 3rd gas meter is typically worth it (cost vs rentability/value)

    • Red flags you’ve run into with in-law units from a resale, appraisal, or inspection standpoint

    Would love to hear from anyone who’s rehabbed, owned, or sold properties with in-law units — especially in older buildings.

    Thanks in advance.

    Was the in-law apt legal AND done with permits when done? Makes getting variances a lot easier.

    consider renting to a larger family the in-law and the apt it connects to as one unit? Nothing wrong with having a kosher kitchen.


    HVAC is going to be controlled by whichever apt has the thermostat. That person is also paying for all the electricity for running it. Use window units?

    Third gas meter will require inspections and probably a separate furnace. 
  • Member since 2018 · 1k+ posts · 1k+ votes
    8mo

    A further note:

    You have two big problems, one hugely expensive without a variance, and the other simply gawd-awful expensive.

    The huge one is the ceiling height. Unless you get the variance, you have to dig out the foundation so that your minimum ceiling height is 7 feet. You'll have foundation, drainage, and plumbing to contend with. Several tens of thousands of dollars to do everything right and to code. Try for the variance.

    The eye-watering expense: Heat for the in-law apartment. Chicago's heat ordinance requires a minimum daytime temperature of 68F, nighttime 66F, and may God have mercy on your soul should that not be met.

    That means you are installing electric baseboard heat as a down and dirty solution (eliminates need for third gas meter, too, as stove can be electric). Your problem is that now your in-law apartment needs 200 amp service (don't bother with 150 or 160, the marginal cost of 200 amps is a trifle over those and saves you a lot of grief) for the heat and the stove.

    I sincerely doubt your electric service can handle the extra load without extensive modifications, rewiring, and increased service from ComEd. ComEd will NOT increase service without permits and inspections from the City, period. So you're getting a licensed electrician who will pull permits and have you contact ComEd. After City inspects, Comed with come out, do a last-minute inspection, increase your power supply if everything is jake, and the City will re-inspect.

    If you can get electrical changes done for less than $15,000, you must be God's second son. It cost me circa $25K (don't forget insulation, drywall, and paint), and that was a second-floor in-law apt., not a basement, so easier to do. It's also your chance to revamp ALL of the electric in the house -- helps your resale value. Basically, the days of apartments running 100 amp service are over. Everything needs to be 200 amps for peace of mind. Don't forget being able to advertise that an apartment can handle an electric car charger.

  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    7mo

    One thing I learned the hard way - separate electrical meters make a huge difference for rent appeal and future sale value. Most people skip this thinking it's expensive but tenants love not splitting utilities. Are you planning to keep it as a rental long-term or flip the whole property?

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