Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

Quote from @Hansen Tong: Hi Everyone looking for a CPA in CA that understands cost segregation, offsetting of w2 income through active short term rental partcipation etc. 

I have 2 options:- finance the construction pre-selling the apt, and take my profits (expected to be around 700K pre-tax); or- finance the construction with a 6-7%/year loan (collateral = my house), keep the 10 units, and once the building is completed in 24 months, rent them for circa 180K/ year gross.

If they qualify as tenants, you might need to honor tenant rights or negotiate a settlement to vacate.Market Potential: A two-family home and a single-family unit could be a great income-generating property post-rehab or resolution.

Perhaps they want long term income for their retirement and ultimately their heirs.

$1 lent for $10 of income? 

Held in my property entity that I purposely keep a low balance and doesn’t show a lot of income.

With the low rates and income you have it might not make sense to sell.

Lenders want to see two years of stable income before they loan money to you.

Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.