So, the actual increase to market rent will be much lower.

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

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

In 12 months your payment should drop $500/mo minus next year’s tax increase divided by 12. 

This would increase the benefit to where the fee would not be so outrageous that it would hinder the investment.

Do you see any new rental property up in the market has increased rent since L.A. fire issue?

You can simply request a separate check for the $100 increase to bring the total deposit in line with the new rent amount.

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?

Hey Steven,I’d recommend reaching out to your county assessor to inquire about the increase.

Are you looking at the maintenance/repair costs of the homes once in place, W/S/G costs. septic expense if applicable?