Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago, 02/23/2020

User Stats

2
Posts
0
Votes
Thomas Q.
  • New to Real Estate
0
Votes |
2
Posts

Ability to maximize cost segregation - investment type

Thomas Q.
  • New to Real Estate
Posted

Hi everyone, lurker for past year 1-2 years, finally posting.

Background, physician in the middle of fellowship, expect to make around 230-240k income as an attending. Knee deep in student loan debt more than most others (other physicians included), will make traditional financing extraordinarily difficult, but that's a story for another day.

I am in the unique position where my wife is a realtor. We are also currently house hacking our SFH, renting out rooms, claiming everything on schedule E as we should, getting to deduct our mortgage interest and depreciate our house. Feels good bro.

In any case, my wife manages our tenants, and as we continue to expand, we plan to continue to maintain hourly records/documentation to support her classification as a Real Estate Investor. As we file taxes jointly, this will provide us with the ability to claim all rental activities/losses as active, with the potential to deduct against my W-2 income.

Trying to plan ahead for my next move. Many of you rightly may be thinking "just pay your student loans you fool" for a multitude of reasons including guaranteed return, easier financing, overextended, cash flow issues, already leveraged, etc. I am on an income based repayment plan for student loans, and at this point, I would heavily prefer to minimize payments via minimization of AGI and focus on investing. Rather than sheltering via maximizing 403b, 457, wife's solo 401k, trad IRAs, HSAs, etc, I'd much prefer to focus on personally managed real estate investment properties.

In any case, I see myself as heavily inventivized to maximize depreciation via cost segregration in an effort to shelter my income, and maintain more capital towards expansion. I feel that the ability to maximize depreciation will be a strongly weighted factor when choosing my next investment property, along with the typical numerical factors.

Tldr; fluff above (hope I didn't make too many people cringe), just read stuff below

My question is primarily, what type of property do you see as being able to maximize cost seg?

Considerations i appreciate so far:

- Obviously the most expensive, the more ability to absorb the cost of performing the study, and the more building value to depreciate in general

- Would you focus more on multifam but in class B-C? Smaller class A-B SFH with granite countertops and other items on a faster schedule? Condo with zero land to count against the depreciation?

Loading replies...