I'm definitely not an expert, but I have been the engineer on a few projects that both condemned and were condemned on via eminent domain...First don't necessarily accept the appraisal offer.

It likely reflects a maximum  estimate from operating it as STR.Lesson learned: can’t rely on numbers prepared by sellers engineered and presented to push the sale and the importance of doing own due diligence.

Assets in this category include:Structural components Building foundationRoof componentsBathroom fixturesPlumbing systemsHVAC central split systemFlooringCMU wallsCeiling constructionDoorsGeneral electrical componentsThis engineering-based cost segregation study used the following methodology:Physical site visit to identify and photograph property componentsExamination of architectural plans, accounting records and construction documentsA cost analysis employing engineering principles to allocate costs to specific asset classificationsDepreciation calculation using IRS-accepted methods, such as MACRSThe study also corrected a critical classification error, ensuring the property was treated as an STR with the appropriate 39-year class life and helping the owner remain compliant with IRS regulations.Reminder: bonus depreciation started to phase out in 2023.

Understanding your depreciable basis:Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

Hi everyone, I’m a software engineer based in Michigan, currently working at a startup.

We can reverse engineer to come up with some approximate numbers.ARV = 300kProject cost = 300k x 70% = 210k210k = Purchase Price + Rehaba 300k ARV won't be a 4 bed house host times. 

That questionnaire will be updated sometime soon as our engineers have heard the voice of the agent and are making adjustments.If you haven't done so yet, you might want to check the other lead generation sites and compare what they sell to what BP is offering.

It is very algorithmic-ly dictated based on and numbers and percentages. 

Find the source, ask the engineer or the contractor who will be doing it as part of the plans and have them explain it to you.

It’s all so vague, something to get you excited and dreamy, something to feel good about, but accomplishes nothing.In college they have classes called weeder classes early on in engineering majors.