Cost Seg Study/Accelerated Depreciation

[Mo Karim]

Hi all,

I wanted get some opinion from BP nation on a property I bought in Jan this year to see if it makes sense to do a cost segregation study and accelerate depreciation on it. Here are the numbers:

315k - land value around 60-80k (Property now worth approximately 400-425k bc raised rents by 1k/month, slight improvements, professionally managed, etc.)

7 units - 100% leased
15 year fixed at 4.75%

Cash flowing around 1k/month (even with 15 year note)

Hold for 3-5 years then 1031 out to bigger property

I feel like cost seg may not make sense? In which case, a cash out refi might be better?

Please let me know your thoughts!