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All Forum Posts by: Uri E.

Uri E. has started 18 posts and replied 35 times.

Post: Cost segregation for the purpose of expediting depreciation (SFR)

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2
Quote from @Natalie Kolodij:

Asking for your advice and guidance on the following:

1. Is there a downside to doing cost segregation, to expediate depreciation? If your AGI isover $150k you can't use passive losses, no reason to generate more of them. And the downside is you'll have less depreciation later. 

2. Hiring someone to do the cost segregation analysis and report can cost $10K-$15K. When is such expense of hiring a team to do the segregation analysis, actually worth it? It won't cost $10-15k for single properties. KPKG does software based cost segs for about $700.

3. Can I do these cost segregation estimates myself? No. The IRS requires a reasonable method, cost seg is most upheld. Unless you're a structural engineer you're not really qualified to accurate allocate components of a property with adjusted values.

4. If I do these estimates myself, will that be in violation of IRS rules? Kind of 

5. And finally, can I do cost segregation to expedite depreciation for properties I already owned for a few years? Yes then a form 3115 is required in year of filing and it's fairly complex. Woudln't do this without a tax pro.

Thanks, @Natalie Kolodij.

I thought of passive losses as the next best thing. Why not generate more of them (assuming less depreciation later is acceptable)?

Post: Cost segregation for the purpose of expediting depreciation (SFR)

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Hello,

I buy, hold and rent out single family residences. Each new acquisition I then depreciate using a standard straight depreciation - total cost of land improvements. I recently learned that I could expedite some of the depreciations through cost segregation which can be then depreciate over 5,7, or 15 years, depending on the item.

Asking for your advice and guidance on the following:

1. Is there a downside to doing cost segregation, to expediate depreciation?

2. Hiring someone to do the cost segregation analysis and report can cost $10K-$15K. When is such expense of hiring a team to do the segregation analysis, actually worth it?

3. Can I do these cost segregation estimates myself?

4. If I do these estimates myself, will that be in violation of IRS rules?

5. And finally, can I do cost segregation to expedite depreciation for properties I already owned for a few years?

Thank you!

Post: Investable markets - anything left?

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Thanks, Joe!  Looking for specific suggestions - geolocations.  Which markets would you consider investable?

Post: Investable markets - anything left?

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Are there any investable markets left?

Open to anything ... globally.

Post: Tenants left holes in the walls

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Tenants moved out and left holes above the windows where they previously hung drapes/window coverings.

How do you deal with that?  Charge their deposit to seal and repaint, or just accept it as is refund their entire deposit and move-on?

Post: Is this a crazy security deposit idea?

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Hi @Kira DAnnunzio,

Your idea sounds good at first but here's a concern ... as time goes by you will have less and less of a security deposit in your hands, and @#$#@ happens. 

Post: Buy home warranty or not

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Thank you @John Underwood

Post: Is there a market today worth investing in SFRs for Rentals?

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Know of a market worth buying SFRs for rentals?

My cashflow is based on vacancy 8%, mgmt 4%, maint 2%, cap exp 2%

Post: Buy home warranty or not

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

@Joey Smadar, @Drew Sygit - thank you.

Post: Buy home warranty or not

Uri E.Posted
  • Rental Property Investor
  • Carmel, CA
  • Posts 36
  • Votes 2

Would you buy a home warranty for an SFR you already own (not in escrow), or would you rather call a vendor when/as needed? Pros/cons?