@Troy Bullock I provide a seller net estimate for a property price range when I go to a listing appointment.

Any estimates therefore are pure speculation so, if I was on your side, that's what I would tell you and I wouldn't make any speculative suggestion that helps me sell to you. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Is the cost segregation exercise worthwhile given the purchase price ($2M)?

We require all tenants to add us as "additional interest" on their policies, so we know when policies have been cancelled, but if a tenant chooses to violate the lease and not carry insurance they can eat the costs of their belongings if something happens. 

But then, some would argue that instead of LLCs (costly), I should hop for an Umbrella Insurance. 

That will help move the decision along.What about checking on cost of materials there?

I imagine SF and MF have a lower cost to play? 

The breakdown of costs you've provided is insightful.

Since it is more than one year I own the house I was thinking to do cash out financing on 2 rentals...they both are worth around 125k and get 1500 rent.I went to lot of banks and everyone is quoting about 4000 dollar closing costs for each house for cash out financing.