Hello,

I purchased a property in 2024 for use as a short-term rental (STR) and am looking to perform a cost segregation study to take advantage of bonus depreciation (60% for 2024 unless there are changes under the new administration).

Here are some details about the property: it's a single-family home in Arizona, 1,800 sq. ft., purchased for $470K. I also spent approximately $30K on renovations, including painting and a kitchen remodel.

I’ve been researching cost segregation through YouTube videos and have spoken with two cost segregation companies so far. One company quoted $2500, but they require me to take numerous photos (like EVERYTHING) of the property since their engineer won’t visit the site. If the engineers come to the property, the price would be $3800. What would be your recommendation between $2500 package vs $3800 package?

The second company, KPKG, offers a DIY cost segregation package for $500–$1000. However, I’m unsure of the steps involved and worry about the risk of missing details since I’m not an engineer. I’ve read on BiggerPockets that DIY cost segregation might not yield the best results because key components could be overlooked, leading to lower tax benefits.

I’m uncertain about which route to take for cost segregation. If anyone has recommendations for reliable cost segregation firms or advice on the best approach, I’d greatly appreciate your guidance!