Usually only makes sense if you’re already doing a major electrical upgrade.Written utility disclosure and rent adjustmentIf code allows in your area, some owners disclose that one unit powers a common system and adjust rent accordingly.

These properties are being built to more current codes, lower maintenance/capex, and more favorable insurance. 

I know the tax code can be dry, but I actually love this stuff.Looking forward to connecting with other investors and adding value where I can!

In many municipalities this triggers zoning, licensing, or code requirements tied to boarding houses, rooming houses, or transient use.

I could handle the basics, but the legal and compliance side was where things started to feel risky.Property code requirements, fair housing, notice timelines, lease language, and all the small technical details that can turn into big problems if you miss them.

On the more technical side, hope you’ve checked with your states laws, rules & real estate code (whether they require to be licensed & or a broker).

This is why master-metered heat is one of the biggest margin killers in small multifamily.Short-term mitigation options:• Install lockboxes or programmable thermostats with limited ranges (still compliant with local code)• Improve insulation, weather stripping, and seal air leaks• Service and balance the heating system to make sure it’s not over-firingThese help, but they won’t fully solve it.Real fix (long term):• Sub-meter heat if feasible, or• Convert to individual heating systems, or• Underwrite higher rents that assume landlord-paid heat as a permanent expenseMany Chicago investors simply bake this into rent and accept lower margins, or they eventually reposition the building when leases roll.Do not try to change rules mid-lease.Any change to utilities or control needs to happen at renewal and be documented properly, or you risk violations.Blunt truth:If you’re paying the heat, tenants will use it.

For your first BRRRR stop thinking perfect zip code and start thinking perfect math.

For example, if the improvements don't meet code, he shouldn't expect to be repaid the $200k he paid to make the improvements. 

Yes you can, generally the same as traditional conventional but it’ll be based on property zip code and value.