All Forum Posts by: Kelly Arthur

@Dave Toelkes

Thanks so much. Great points. This  is all a little over my head so all of your insight is appreciated. Thanks again. 

Thank @Dave Toelkes, @Christopher Smith and @Steven Hamilton II. I have a call with a representative from the cost segregation company tomorrow to ask questions.  You have helped me form the questions I need to ask him. I'll update you after the call. Thanks again.

The company I reached out to will charge $2K for the study and gave me a accumulated tax reduction benefit estimate of $3,351 for 2017 and the tax reduction benefit accumulates to an estimated $ 15,052 in tax year 2022.  The study is tax deductible. Does that change your opinion?

Hello BiggerPockets Family,

I own a 3 unit multifamily house and I'm considering having a cost segregation study to accelerate the depreciation on the property.  I know that this makes sense as a tax strategy for commercial property but does this make sense for a residential property. Any thoughts and advice would be appreciated.

Thanks,

Kelly

I think it depends on how many units. For instance, I own property in West Orange. Anything over 4 units is rent controlled. Under 4 is not. I think you have to look town by town. 

Great job. Very inspiring. 

Sounds interesting. I'm curious to see what the BP family has to say. 

@Chris Monello this is not a deal. I think you really underestimated your expenses. Get a good rental calculator to run the numbers. The BP Rental Calculator is really good. Also, make sure you have good numbers for your expenses by calling around and factor in vacancies and CapEx.

Thanks @Ibrahim Hughes. That's helpful. Ill give it a shot and see what happens. Doesn't hurt to inquire. Thanks again. 

Thanks @James Mc Ree. I plan to give the town's building zone a call on Monday. I'm not completely sure it's zoned as a 2 unit but I'll verify that and then see if it can be rezoned as a 3. Either way, its a sound property but the numbers work better as a 3.