All Forum Posts by: Seb Ko

@Seb Ko I'm doing the same thing right now and every lender I've contacted said they can do it, just usually 75% LTV. Talk to local credit unions and banks if you haven't already.

@Seb Ko - There is an abundance of lenders that would do a cash out refi on a 3-unit rental.  Not sure why you would be having trouble finding one just based on the property type.  If you move into the property and make it an owner-occupied deal, then your lending options would be restricted to owner-occupied residential loans only.  

yeah, sort of.  The explanation was a bit hand-wavy, and not super convincing.  But I did end up using them to do the cost segregation on 2 smaller buildings, and they made manual corrections to make the totals more reasonable, so their customer service was good.

My thoughts after doing a couple are: I don't have that much faith in these database based cost seg studies.  The fact that manual corrections are necessary tells me that the automated database method can't be that accurate.  They are basically just an insurance policy in case you get audited.  I could probably do just as accurate of a rough estimate of 5 and 15 year property totals...in fact probably even better because I know much more detail about the buildings than they take into their analysis.  However, you get a sheet of paper that says this is based on XYZ, etc., and an outside party to back you up.  What are the odds you get audited?  I have no idea, so I don't know if paying for these "insurance policies" is worth it or not.  I'm going to use Titan Echo for a full cost seg on a larger 8 unit building, as the cost difference for using the automated version and doing a full engineering analysis (as long as I do the onsite data collection myself) is not that different.  I will then be able to compare those results and that process to the automated version.  I expect it should be much more meaningful.

With the automated analyses, you only get useful totals of 5 year and 15 year property.  So if you want to be able to depreciate items independently, and write off retired/disposed items, then you need the full detailed study.  But for small multifamily, that's not necessary, so it seems fine.

@Allen Tracy it’s good to hear that you like “Real Property Solutions” I am in the process of interviewing them. I would like to connect more with you as I think we both doing the same.