A reasonable allocation determination is what's required- not necessarily a cost seg. 

@Jinhee Hann I think what @Sarah Waterman was saying is that you CAN depreciate the purchase (and allocate that with cost segregation), but what you were mentioning your cpa did was for inventory and improvements...NOT cost segregation study.

The below graph shows multi at 36% 🔥 of investor allocation.

How you allocate your expenses to deduct against your income is up to you; however, any expense that is obviously for your rental properties should be deducted from rental income and not your real estate agency income.  

I am continuing to add value to the property over the course of this year I will allocating 40% of my saved income to refacing and replacing vital components of all three units!

$100/month Allocation per SFR for cap expense is way too low over the long term.  

I know a lot of them.. they dont think about the 1% rule  they have been spoiled for the last 10 years on an appreciating Toronto market.. negative cash flow is fine with them.. their decision is based on location and can they allocated a portion of their high income to supplement their out of pocket expenses..Most of them are not so analytical on cash flow analysis like we are

It makes me think about asset allocation in the next 15 or so years

The combination of allocating what you were losing by renting and then moving in one side makes the opportunity becomes more desirable and profitable compared to a pure investor.  

You need to include vacancy, utilities, repairs, CAPEX and management allocations.