Assets identified in this study include:Building systems: water heater, electrical distribution, HVAC, plumbinPermanent Fixtures: windows, doors, bathroom fixturesStructural Components: Roof construction, drywall, wood framingInterior Construction: Wood flooring, stairs, ceramic tileThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

It's already well in motion, and 5-10 years it will be even more cemented.

Here are a few:- Loose stair railings that you decided to fix next year instead of now because money is tight.- The wasp nest that you noticed underneath the front porch and decided to disregard.- A hot tub that isn't wired correctly because you hired the housekeeper's husband to do it for you for 50 bucks.- The shiny new barbeque grill that you had the housekeepers place on the wood deck next to the railings.- That quirky, and warm, light switch that you didn't notice because you haven't been to the property in a year.- The shower that you noticed is awfully hot but failed to check into it more before you left.And so on. 

Definitely get a lot of quotes.Hi Gi'angelo,According to my contractor, the quote includes materials that are not visible (such as lumber and cement), labor costs, and HVAC.

We turned a SFH into an up/down duplex by framing in a locked door at bottom of stairs and adding a kitchen to the lower unit.

You're cementing your loses if you stay. 

Apparently they should be brick pointing with lime mortar, but instead, they said the city will just plaster over the historical materials (original brick and lime mortar) with Portland cement because it's cheaper, faster and easier than working with more delicate, temperature sensitive lime mortar. 

An egress roof window would get you into the roof which could get you over to the second floor stairs, I'd have to add a few more stairs but that would be easy. 

Thus, the next challenge and frontier for many DSCR lenders seeking to serve the growing number of real estate investors pursuing this strategy is to cement a qualification and underwriting methodology to properly qualify MTRs and accurately project their revenues.

They could put cement in the toilet, rocks down it, they could refuse to leave and leave you tied up for six months trying to get them out or more.