All Forum Posts by: Matt Jones

I purchased this tri-plex property as a BRRRR in March 2021, completed the renovations on all 3 unit interiors as well as the exterior in August 2021, completed the refinance in October 2021, and have been cash-flowing this property since. Rents are currently $850/month for the middle unit, and the two end units are vacant and ready to be rented. All units are separately metered for water/sewer by a submetering company, and tenants pay for the gas and electric as well. Offstreet parking assigned to each unit. Gross income in 2022 was $25,610. Perfect investment for a remote investor looking for a cashflowing property with appreciation potential (see $20Billion Intel and $7.8Billion Amazon Web Services investment press-releases) and I am now wanting to diversify my portfolio by investing in mid-term rentals for traveling nurses and short-term vacation rentals, so I am willing to part with this property.

Type in your Ohio investment property address at the following link, and the results will tell you what Municipality (City) income tax return you will want to file in the state of Ohio. You will want to file an individual tax return if the property is held personally or in a Single-Member LLC (Disregarded for Federal tax purposes) and a Business tax return (under the entity's EIN) if the property is held in a Multi-Member LLC/General Partnership/S-Corp/etc. Note, if you are operating a business entity with out-of-state partners/member holding Ohio rental property you may want to consult an Ohio CPA. Please reach out and I would be happy to discuss.

https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/AddressLookup/LookupByAddress.aspx?taxType=taxsummary

Point well taken Paul, thank you for your input! KBKR has free webinars covering their cost segregation tools that I am going to check out (free CPE!). I will report back when I find out more from their webinar. 

Separate but related question, do you know if the cost of a cost segregation report  is deductible or must be amortized? Just curious....

I'm also looking into a DIY cost segregation approach for 3 duplex properties that I will be closing on in the next 45 days. As a licensed CPA I know enough to understand that cost segregation studies are a very specialized product that require, at a minimum, industry specific cost and engineering data support which can only be acquired through experience and a history of completing such studies. This has led me to search for firms specializing in the niche area of cost segregation for lower value rental properties, and what I found was firms who are using internally developed software which allows for such cost/engineering data to applied to basic parameters of a specific rental property to come up with a lite cost segregation report for lower value properties (depreciable basis >$500k).  So far I have found 2 firms that provide such a service, 1) KBKG and 2) TitanEcho. Both of these firms offer cost segregation reports, generated from proprietary software, for $400 apiece, however KBKG offers complementary audit defense while Titan audit defense is extra. The return on such a relatively small investment is a no-brainer because of bonus depreciation, however I am curious to see if anyone else has tried or heard of these firms or others providing similar services.