While the IRS does not mandate a physical site visit, the IRS cost segregation audit technique guide (ATG) does suggest conducting “field inspections.”It’s important to note that the ATG is not an official IRS document.It serves as a guide and cannot be used, cited, or relied upon as an authoritative source.However, the recommendations in the ATG are worth considering.According to the guide: “A field inspection is recommended to document the physical details of the building, type of construction, materials used for construction, the assets contained in the building, the size and types of building systems, and any land improvements that were included in the purchase of the property and the condition of that property at the time of purchase.”So while the IRS does not require a site visit for cost segregation studies, following the guidance from the cost segregation audit technique guide can be beneficial.

The one big hesitation we have is that it seems like you can not deed the title into an LLC (for asset protection).

Distressed commercial assets, as most good real estate, come from building relationships over years, not from buying a program, getting a good SMS system, and making a flowchart on how to be the best.You are  trying to skip the steps that all long-term investors have mastered, knowing other investors and leveraging deal flow between each other because the trust is there.

Once you decide on a specific market, you will want to narrow you search down to specific zip codes and asset classes.

It is hard to think about giving up an "asset" that is worth $1.15 mil and at the low end would be expected to grow at 5% per year (house worth ~1.7 mil by 2035), even if I incurred ~$50K worth of costs over 10 years. 

I am a 21 year old and I’m currently employed as a 1099 contractor (intern) for a digital marketing company and have been working there for a little over a year now (Haven’t filed taxes yet).

Also, @Joshua Stanton, how do you protect yourself/assets if you can not deed the property into an LLC? 

Ensure it cash flows comfortably.Market & Location: Research local rental demand, property values, and any applicable LTR regulations to understand the area’s potential for long-term success.Future Potential: Consider if the property could appreciate or attract quality tenants over time, supporting stable cash flow and asset growth.This checklist should set you up for a solid LTR investment!

I have had every one of the above come into play, which has caused the timing of exiting the asset to take longer than anticipated.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.