Our sweet spot for our depressed are is rent 28%-31% of income.

I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

I know a cost segregation study would be too expensive for such a small amount of property, but is it permissible for me to estimate the value of the components on my own?

If less than two years, cost seg probably isn't a good route.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

What are yall using for your expected maintenance cost of a Mobile Home?

And hopefullt you won't need a traffic light, which costs in excess of $100,000, though you will be required to do a traffic study. 

Is my thinking correct that homes in highly appreciated areas won't benefit as much from Cost Seg. 

A cost segregation study was performed on this single family home in Iowa City, Iowa with a depreciable cost basis of $649,900.

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