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

In a previous post, I discussed the difference in each of the most common cost segregation study approaches.

As a CPA focusing on real estate taxation, I frequently encounter property investors excited about cost segregation studies.

Does anyone have any good studying material for this exam or have any insight on what I should focus on?

If you have hired a specialist to perform a cost segregation study of your real estate property, they will likely use one of the six most common methodologies recognized by the IRS.

Quote from @Max Bellino: I’m looking for guidance on whether it’s worth opting for a rapid report for a cost segregation study, which is less expensive than a full site visit.

For instance:If your area has many corporate offices or conference centers, you're likely to attract business travelers.Family-friendly suburbs with parks and schools often attract families.Downtown locations near nightlife are popular for groups and parties.Review Competitor ListingsSearch for successful Airbnb listings in your area and study their target audience based on:The language in their descriptions.Their reviews (guests often reveal the purpose of their stay).The amenities they offer (e.g., desks and Wi-Fi for professionals, cribs and baby gates for families).Evaluate Your Own SpaceYour property’s layout, amenities, and location may naturally cater to a specific audience.A cozy 1-bedroom apartment downtown might be ideal for professionals or couples.A 3-bedroom house with a yard might appeal more to families.Proximity to nightlife might cater to party groups.Experiment and AdjustIf you're unsure, start broad and monitor who books your property.

The rest of 2024 and early 2025 will likely reveal more about how different segments of the market adapt to these unique conditions.

Here's an article with FAQs including the cost of a study.

Purchase price: $72,000 Cash invested: $107,600 Case Study: Cockroaches to Cash FlowProperty AcquisitionI found this property through MLS.