Fha loan cost segregation possible?

[James Webb]

I am planning on buying a 4 unit complex for 200k using a fha 3.5% loan. Live in one and rent out the rest. Is it possible for me to depreciate the 3 units with cost segregation to get a big tax deduction. TLDR can I tax deduct depreciation as a business on a fha loan?

[Nicholas Aiola]

@James Webb What you're referring to is not "cost segregation"; that's a study done to identify personal property and separate it from real property. It's likely that the cost may outweigh the benefits with respect to a cost segregation on a property as small as 4-units but maybe not - it's certainly still an option.

To answer your question, yes, you can claim depreciation on the 3 rental units even if you used an FHA loan to purchase the 4-plex.

That's the beauty of house hacking and depreciation :)