When to do a cost segregation?

[Patrick Croffie]

When I read or hear about cost segregation, it seems to be exclusive to STR. Is that accurate? If not, when should I do one?

Context: We own a duplex in Chesapeake, VA and put $57K into it in 2024 and $13K again (flooring repairs) in 2025. We've spent a good amount of money getting it up to rental condition. Should we do a cost segregation?

[Michael Plaks]

Quote from @Patrick Croffie:

When I read or hear about cost segregation, it seems to be exclusive to STR. Is that accurate? If not, when should I do one?

Context: We own a duplex in Chesapeake, VA and put $57K into it in 2024 and $13K again (flooring repairs) in 2025. We've spent a good amount of money getting it up to rental condition. Should we do a cost segregation?

It is not exclusive to STRs, but it is case-by-case. Need to know your family income, need to know the history of this property (when purchased and for how much, when ready to rent, are both sides rented, what's the cash flow etc.), need to know your other investments, real estate and others, and so on. A lot goes into it.

Anyone who will tell you "absolutely go for it" or "absolutely don't" without a thorough analysis is to be ignored.