If you are a foreignor, your 'normal straight line depreciation' may have a longer period than someone who is a US resident / Citizen.Is it possible to do a cost segregation study = YesDoes it make sense to do a cost segregation study = MaybeThe only reason I would prolly consider doing a cost segregation is if you think this rental property or another rental property would generate positive rental income in the near future(1-4 years).

It may feel uncomfortable at first, you may have to find what works for you, but if you want to consistently find potential deals without immense competition it's likely where you should start.  

Kris,There are many ways to anticipate future appreciation.

Hopefully, that every corner you try to cut to save money - has potential negative repercussions!

Also, great tip to study the rent with a microscope to determine the actual potential!!

The biggest thing that sticks out to me is, if the property is in good enough shape to qualify for a conventional mortgage, there is a larger pool of potential buyer, so there may not need to be enough spread between purchase and ARV.

Right now we are on the high side of things.  2 years ago, we were on the low side of things where money was cheap, and cash flow was easy to be had.Some will argue to go ahead and buy now for a 'no cash-flow, future appreciation' play.  

You could potentially shore up the loan by adding additional collateral (even if it's in 2nd position behind bank loans) but it's still pretty risky when you aren't knowledgeable about this type of project.

I'm moving to Utah in a few months and will be looking to potentially start this business. 

IF you do the Ellis act, you are eliminating any condo conversion potential for the unit.