WHAT IS A COST SEGREGATION STUDY?

@Kerry Baird Love hearing about others taking advantage of cost segregation studies.

Is this normal cost or high?

During this renovation period would you, as the lender, want an Actual Cash Value or Replacement Cost policy in place?

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.

These methods include: Detailed Engineering Cost ApproachDetailed Engineering Cost Estimate ApproachSurvey or Letter ApproachResidual Estimation ApproachSampling or Modeling ApproachExperience or “Rule of Thumb” ApproachIt’s important to understand the differences between the approaches including which one best fits your property and the reliability of each approach.DETAILED ENGINEERING COST APPROACHThis approach compiles the costs from construction and accounting reports to build a report.

To be brutally honest i don't care if it's at cost, below or above, I only care what it is exactly and how much. 

For residential multifamily properties (1 - 4 units), can you use a home warranty to take care of the repair costs associated with rentals?

Cost segregation utilizes the MACRS approach.

It would/could be only 15% capital gains tax and yes you could/would deduct all selling costs including commissions and transfer taxes.