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. 

As a DSCR lender, I have originated ~200 DSCR loans so far so my answer will hopefully be helpful.In my opinion, the pros of DSCR loans far outweigh the cons, which is why DSCR loans are now the go-to form of financing for rental property investors.Pro Number 1: Streamlined UnderwritingDSCR loans have a shorter and less demanding processing checklist than bank loans and conventional loans.

You will need to work with a tax professional to analyze your current tax situation (income, deductions, activities, etc.) as well as projected income from the fix and flip business.The benefits have to outweigh the costs (payroll costs, additional tax returns, more stringent reporting and compliance requirements, etc.).One important note - an S Corp is not an entity; it is a tax election.

It sounds like in California, no you cannot get records of people who have had their water turned off unless you can convince "..the utility... that the public interest in disclosure (of these records) clearly outweighs the public interest in nondisclosure.”The paragraphs below are from here https://firstamendmentcoalitio...Unfortunately, there is a specific exemption under the California Public Records Act that exempts from disclosure “the name, credit history, utility usage data, home address, or telephone number of utility customers to local agencies,” though it goes on to state that such information may be made released “[u]pon determination by the local agency that the public interest in disclosure of the information clearly outweighs the public interest in nondisclosure.”

Question: Do all the presumed benefits above outweigh the higher investment property mortgage rates? 

While the closing costs may be higher than a HELOC, the long-term interest savings might outweigh this initial expense depedning on the property value, LTV, credit, etc. 

I’ve spoke to Lucas and ended up agreeing that in my particular circumstances - there wouldn’t be enough of a financial increase to outweigh the additional labor (Albeit as small as it would be).

Seems like the bad feedback here outweighs the good.