Every market has it's pros cons and your goal investing with guide to to which pros outweigh the cons. 

@Annwar Zahrieh There are certain transactional costs/ costs of doing business in Philadelphia to be mindful of, but I believe the fundamentals that exist in Philadelphia far outweigh this IF investing wisely.

Here's the thing, I'm stuck in the twilight zone on whether a cash-out refi would make sense only if the next deal outweighs my current cash flow from the rental.

Most cost segregation firms will provide a free cost/benefit analysis quote to help you determine if the tax benefits from the study will outweigh the costs.

If the projected tax savings outweigh the cost of the study within a reasonable timeframe, it may be worth pursuing.Given your qualifications and involvement in the property, you likely have a good understanding of its components and renovation costs, which can facilitate the cost segregation process.

I recommend you read books or (view You Tube)written by IRA Financial founder,Adam Bergman.The beauty of tax free cash flow of 14%+ ConC and no capital gains taxes ever, far outweigh any lost depreciation deductions.

Furthermore his point is that regardless that this is likely defensible, that IF there is an audit the cost (and/or time) of an audit defense may outweigh the benefit of the cost seg.

There are a number of guidelines the IRS has for performing a proper cost segregation study (which will pass in the event of an audit) Here is the link to that list on the IRS website:Cost Segregation Audit Technique Guide - Chapter 4 - Principal Elements of a Quality Cost Segregation Study and ReportI have never seen a DIY before, but I'm sure people do it.Depending on the size and type of your property the fee for engaging a qualified engineer-based firm to conduct the study can be as low as $3,000 (lower in certain cases), and the significant benefit created well outweighs the minimal costs.

@Alecia LovelessOne thing I'd like to add to the discussion is that the drawbacks to having a tenant like this in an 8-unit usually far outweigh the advantages of getting rid of them quickly and effectively.

If the potential tax savings outweigh the cost of the service - and you're planning on keeping the property for at least 5-7 years, a seg study can be a really good tool to get some tax savings up front.