Anything short of that requires a foreclosure sale on the courthouse steps (Or whatever methodology that local jurisdiction employs) in order for the lender to gain ownership.

The IRS's preferred methodology is engineering-based studies which help you, your tax professional and the IRS going forward.

As you know, the IRS Cost Segregation Audit Techniques Guide provides information regarding the specialization, methodologies, and frameworks one Cost Segregation Preparer should have in order to provide an accurate qualified study.  

The good news is appraisers use a very standardized methodology, and there's no reason to think you're going to get a value that's way out in left field. 

I was trying to decipher what people wrote here but I found the methodology to be inaccurate if not say very confusing.

If you have questions or would like more detail about this methodology, DM me.Selecting properties is a straightforward process if you let your target tenant segment define all the characteristics of the properties you purchase.

This process protects the borrower and the lender so I'm concerned what methodology your private lender used. 

. :)I've never tracked my properties based on monthly rent/building cost percentage...more along the lines of making 25% annually on my total investment per year $5000 net from $8400 gross on a $20k property since I buy my properties with cash.I'd love to hear more about the basis the the percentage tracking methodology, first time I've used it.

For those of you who are pretty good at coming up with your after repair values what is your methodology?

These posts may be helpful to you as well:Cost Segregation Methodologies - Key DifferencesCost Segregation - what to consider when looking for a firm?