Cost Segregation Study for First SFR?

[Matthew Kirkwold]

Good morning all,

I am currently talking with a CPA I want to use for filing rental and W-2 income in 2022 which is the year I bought my first rental property. The CPA I'm working with has about 80 other real estate investor clients and in our discussions, I asked about a cost segregation. He checked with the guy that does those studies at the firm and came back with estimations that the study would cost about $3,000 and save about $5,000 in taxes over the next few years on the single family rental I purchased for $199,000 in April 2022. I am wondering at what point is it worth the cost of the study? My initial thought is the cost of the study would prolong my saving up for my next down payment on another investment I want to do in 2023. Do I have the wrong mindset here and should I be more focused on reducing taxes as much as possible? I am wondering what other BP folks have done and appreciate any ideas or points that I'm missing. Thanks!

[Julio Gonzalez]

@Matthew Kirkwold I think it may be worth getting a few quotes from other cost segregation study companies. Only $5,000 in tax savings seems low for your property.