Taking a DIY approach is not advised unless you have the right experience and expertise.Otherwise, you may find yourself falling victim to the pitfalls below.Lack of DocumentationOne of the biggest pitfalls of cost segregation studies is inadequate documentation, such as:Missing invoices Inadequate supporting evidence for your cost allocationsImproper or incomplete descriptions of reclassified assetsHaving insufficient records can create headaches and challenges during IRS audits.

Hopefully a) they meet/exceed my expectations over time and b) more auditable info/data comes into existence based on the experience of Flock shareholders, in contrast to the rather limited info/data that exists today. 

OPAsk your utility company to do an energy audit.

We intentionally provide a number of checks and balances within FlipSystem (deal analysis, rehab bid audits, and inspection report reviews just to name a few) to ensure that our team is always providing feedback and analysis to clients on their potential deals.

I am currently auditing the past 15 months of statements, but I suspect this will amount to well over $10,000 across the three properties they previously managed. 

Would an energy audit be useful?

The IRS in its Passive Activity Loss Audit Technique Guide published a sample Activity Log.  

Step 1 is a total audit.

•They’re flagged as tax havens, which makes you more likely to get audited, even if you’re totally compliant.In contrast, the Cook Islands is tax-neutral—it has nothing to do with tax benefits.

Open permits can create title issues, violate lender requirements, or trigger DOB audits.