Cost segregation - multi family vs single family

[Alex Bellini]

Hey everyone! 

Is there any diff / benefit in single family vs multi family as it pertains to cost segregation? I know the study may be more costly on multi family which is fine. 

I’m looking to buy either and accelerate the depreciation to offset income.

Thank you for any / all of your advice. I looked through some other posts prior to posting this and couldn’t find an answer to this question. 

[Yonah Weiss]

@Tanner Sherman makes a great point regarding REPS and whether or not one can benefit from the accelerated depreciation.

To answer your question @Alex Bellini, each property, and type of property is unique and have different assets and amounts that can have accelerated depreciation into 5 year (personal property) and 15 year (land improvement) categories. 

That being said, on average we see about 25-30% of reclassification to faster depreciation (eligible for 100% bonus depreciation) for garden-style multifamily properties, and 15-20% for SFRs, unless they are short term rentals, in which you own all of the furnishings and amenities, it's more like 25-40%

The cost should be associated with the scope of work of the project in which multifamily or other commercial properties require significantly more work, whereas SFRs require relatively less.