Kitchen/Bathrooms or A/C?

[Elbert O.]

I have a 4 unit multifamily in Chicago and would like to upgrade the vacant unit.  The unit is large (1750 sq ft) and is a 3bd/1.5 bath, but the building is old and the units don’t have a/c or dishwasher.  PM thinks it can rent out for $1650.

So, kitchen/bathroom or mini split a/c?  Have gotten a bunch of quotes for each and both options will cost between $15 to $20k.

[Richard F.]

Aloha,

If the building is 100 years old, and you already know that some significant wiring will need to be run for AC, odds are ALL of the wiring needs to be updated. Rather than risking overloads and fire due to who knows what kind of repairs and extensions that have been done over the past 100 years, I would look at updating the wiring completely. Old systems can be constant problems due to the sheer amount of electrical gadgets and small appliances found in most homes. This can affect your Tenants, potentially damaging their modern electronics.  With knob and tube, it is not uncommon to find the wiring incorrectly connected to romex with no attention to correct polarity, and of course you have no separate ground which is your primary safety path. Troubleshooting old systems can be time consuming. Correcting improper wiring is also time consuming. Better to completely update now, preparing for AC and other upgrades 2 - 4 years in the future.

Your Insurance company is likely to require an update at some point, better to do so on YOUR schedule. A properly permitted upgrade with new panels would probably actually lower your premiums if it does currently have knob and tube in substantial areas...or old timey fuses.

You can look at other options for a shorter term cosmetic update of the bathrooms and kitchens to help increase rents. Budget for a long term upgrade over the next 3 - 5 years.