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DIY Cost Segregation vs. Engineering-Based Studies

Nov 2024 7 min read

When it comes to cost segregation, there are two main approaches. Understanding the difference is key to choosing the right one for your property.

Traditional Engineering-Based Study

This is the classic method. A team of engineers visits your property, analyzes blueprints, and performs a detailed analysis to classify assets.

  • Pros: Extremely thorough and considered the gold standard for complex, high-value properties.
  • Cons: Very expensive (often $5,000+), time-consuming, and not cost-effective for smaller residential properties.

Proprietary Software Platform (Our Method)

This is the modern approach. We use a combination of your guided inputs (property data and photos) and powerful proprietary software to perform the analysis.

  • Pros: Extremely affordable, fast (under an hour), and specifically designed to be cost-effective for residential rentals. Our methodology is based on the same IRS guidelines as traditional studies.
  • Cons: May not be suitable for highly unique or large-scale commercial properties that require an on-site engineering review.