Cost Segregation Study on Single Family BRRRR

[Marcus Auerbach]

I've been playing around with KBKG's online calculator for cost segregation and realized that the issue with BRRRR is that the cost basis compared to the value is relativley low. At least per property, it adds up over the portfolio.

A typical property for us would be 150k purchase price minus 50k land value plus 50k for rehab. That leaves me with a relatively small accelerated depriciation for the acquisition, seems like there is more meat on the bone digging through the actual improvements. It seems like a downside of BRRRR is that it greatly reduces the impact of a CS compared to buying a move in ready asset for 250k.

Do I have to go through a partial disposition calculation? Or just find the receipts for every ceiling fan and mirror?

Can anyone walk me through an example and best practice for a CS one BRRRR?