Choosing the right cost segregation approach depends on your property type, renovation history, and the level of precision you want in your analysis. Today, investors have access to several tiers of studies DIY, Engineer Reviewed, and Fully Engineered, each designed for different levels of complexity and investor needs.
Each approach has a purpose. A small Airbnb property might benefit from a quick, automated study, while a large apartment complex or mixed-use building may require an in-depth engineering analysis. The key is aligning your property’s characteristics with the right study type to maximize depreciation benefits while staying compliant.
DIY Cost Segregation Study – Simple, Fast, and Affordable
Best for: Small residedntial properties with minimal renovations and a cost basis under $1 million
Price: $595 per property
Turnaround: Instant
The DIY cost segregation study is the most affordable and accessible solution. It allows investors to instantly generate IRS-compliant reports by simply entering property details online through Cost Seg EZ. This option is ideal for Airbnb hosts and smaller investors seeking quick depreciation benefits without major complexity.
Advantages
- Simple inputs and instant generation
- Cost-effective and efficient
- Ideal for small, straightforward residential properties
Limitations
- Not suitable for major renovations or unique property features (e.g., guest house, pool, dock)
- Requires accurate data entry and clear records
- Audit support often costs extra
DIY cost segregation tools are best suited for entry-level investors or smaller residential assets where simplicity and speed outweigh the need for engineering precision.
Engineer Reviewed Cost Segregation Study – Balance Between Cost and Accuracy
Best for: Residential properties under $3 million with renovations up to $100,000
Price: $895 per property
Turnaround: 3–5 business days
The Engineer Reviewed cost segregation report combines the convenience of a DIY study with professional oversight. You input your property details, and MVO’s engineering team performs a detailed review to ensure accuracy and maximize tax benefits.
An Engineer Reviewed cost segregation study combines the accessibility of a DIY model with expert oversight. After you enter your property details, an engineering team reviews the data to confirm allocations, ensure IRS compliance, and identify additional depreciation opportunities that automated systems might miss.
Advantages
- Reviewed by qualified engineers
- Higher accuracy and improved audit defensibility
- Faster turnaround without full site inspection
- Great middle-ground for growing investors
Limitations
- Still limited to smaller residential properties
- Complex renovations or custom construction may require a fully engineered analysis
This approach works best for investors who want professional assurance without paying for a full engineering engagement.
