Affordable Cost Segregation??

[Katherine Wiltse]

Hi BP community! I now realize I should have posed my original question in this section. Through advice I have changed our CPA to someone much more knowledgeable regarding real estate investing/professional strategies. I also learned that I could do a cost segregation on our shop/apartment that we rent out. Here's the new issue. The CPA we have hired subcontracts with an engineering firm for all cost segs and the minimum cost is 5k. I understand that there is a lot more savings to be made with a thorough cost seg. However, money is an issue currently and I have heard that there are good firms that will do a 2k cost seg for smaller properties. I plan on using the engineering firm in the future, but was hoping to find someone quality and in the 2K range for this property. Does anyone have any referrals? Any other suggestions? Bigger Pockets community I LOVE YOU!

[Michael Plaks]

@Katherine Wiltse

I don't have all the facts, but I hope your new CPA does not have a conflict of interest by steering all their clients to a specific cost seg firm and getting a cut.

Two reputable cost segregation companies that are active on BiggerPockets are owned by @Yonah Weiss and @Julio Gonzalez - reach out to them and ask about their pricing, although I doubt it would be $2k. Unless they have a local office in your area, which is unlikely, their cost includes travel by an engineer to visit your property, and the travel costs alone make $2k unrealistic.

As a cheaper alternative, you may consider DIY software-based cost segregation. It's less reliable and less thorough but more affordable, particularly when the value of your property is relatively low. The guys I mentioned can refer you to the DIY sites if you jointly conclude that the full cost seg analysis is not the best option for you.