Due to the market conditions I wanted to have a good amount of equity in the building so I only refi'd 50% of the purchase.

Will likely take longer to close than a traditional hard money (they have to order an appraisal, satisfy lender conditions etc..).

For this deal to work under those conditions, the purchase price would need to be closer to $179k.With your original assumptions 249k, the deal is marginally acceptable but not great, given the negative cash flow in the early years.

So, we found a California based lender that we started working with, and got our initial approval with a few conditions (documents etc.) that they need, no big hurdles. 

Non-tangible property includes buildings, land or other inherently permanent structures.I get a lot of questions on which group specific assets belong in, so I put together a list to help.Non-Tangible PropertyBuilding (27.5 or 39 Year Useful Life)Land (Non-Depreciable)Paved Parking Areas (15 Year useful life)Swimming Pools (15 Year useful life)Fences (15 year useful life)Bridges (15 year useful life)Exterior Landscaping (15 year useful life)Docks (15 year useful life)Sidewalks (15 year useful life)Tangible Personal PropertyMillwork or decorative trimCarpetAir Conditioning equipmentShelving, cabinets and display racksAccordion doors and partitionsWall coveringsInterior landscapingNeon or other signsDecorative and business specific activity light fixturesGenerators, machinery and kitchen equipmentWindow treatmentsWhat other questions do you have regarding cost segregation?

@John Clark haha in Albany Park there are now million+ new builds and 2 units in average condition sell 5-600s.

It is also great to change small but specific terms and conditions due to it not being just one tenant anymore.

I know conventional lending could become an issue depending on the condition of the property.

I was not comfortable with the market and interest rate conditions, so I elected to hold off.

I have little confidence in turnkey providers, deals are already hard to come by, if they take another 20% cut before.. much better to buy a property from an owner that is in good condition.