Multi-Unit Rehab Cost Help

6 Replies | Chicago, Illinois

Hi All. I'm a new investor planning to purchase a 2/3 unit property within the next year (in Roscoe Village / Lakeview).  Curious if anyone has experience with rehabbing multi-unit properties? I would really like to get a rough estimate of what the following could cost.

HVAC install for all units

Dig down basement and build out to make 1st floor an owners duplex down (2 bed, 1-2 bathroom depending on space, rec room)

Adding laundry (stackable) in each unit

I have had discussions with a realtor and one contractor, however curious in getting more opinions.  Just joined bigger pockets and excited to get connected with other investors in the city!

Much more loaded question than you think as these can be easy or, because of one little thing, be much more than expected. 

What kind of heating does the building currently have? If it's central then there's already venting so usually you need to add electrical and condenser units. Some places already have electrical setups. Depending on age you may have to do more updating to the electrical than expected. If it's radiator heat then you need to run venting which would be a lot more. 

Regarding adding laundry, do you have room to add it? You have to do this properly (i.e. proper drainage, tiling floor, etc.) as water can wreck havoc on your property. Some buildings can run it in a closet and have the same floor plan so the plumber goes straight up/down. Some have different layouts so you can add it to floor 1 yet not 2 and 3 or floors 2/3 are good yet floor one has a different layout (of course anything can be done for a price, yet stating in reasonable terms). 

Digging down is expensive and hard to estimate. You're looking between $35-50k, especially if you need to run drain lines (which you'll likely want to do). How high are the ceilings currently?

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@Jason Albasha Thanks for your input!  I'm just getting started, therefore still learning about all potential variables.  At this point, I'm probably going to start with an investment that doesn't need this much work.  

@John Warren Thanks for the advice! I did reach out to Brie a few days ago about investing these neighborhoods. 

@Chris Klobuka

HVAC - depends if there are ducts existing.  If so $5k per unit to do a new furnace and AC and if not about $8-$12k depending on the size and location

Dig down basement - $30k if you don't need to underpin the footings, $50k if you do

Laundry - depends on the location of the current stack.  If you can tie it is (20% of the time) about $2k per unit plus the appliance.  If you need to add the stack and are not already gutting it, $15k-$20k plus the cost of the appliance