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RCN Capital values building strong partnerships with industry professionals because partnerships drive our success. Learn more about RCN Capital’s Wholesale Lending opportunities, including the Broker Referral Program and the Correspondent Lending Program.

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RCN Capital is a nationwide private, direct lender. Established in 2010, we provide retail and wholesale lending options for short-term fix and flip financing, long-term DSCR financing, and ground-up construction financing for real estate investors.

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Uncontested Investing - Cost Segregation Studies for Depreciation Benefits


Originally published on December 16, 2025

Uncontested Investing Podcast - December 16, 2025

In this episode of Uncontested Investing, we are wrapping up our tax and legal strategy series with a deep dive into cost segregation studies and how they can supercharge your depreciation, tax savings, and cash flow. Most investors focus on appreciation – but if you’re not using depreciation the right way, especially on larger commercial and multifamily assets, you’re probably leaving money on the table.

We break down what a cost segregation study actually is, which property types it makes sense for, and how engineers and specialized firms reclassify parts of your building into 5, 7, and 15-year property instead of 27.5 or 39 years. We talk through when to order a study, how it fits into your overall tax strategy, the real costs (often $10K–$30K), and the key risks like IRS scrutiny, recapture, and documentation.

If you’re holding commercial, multifamily, industrial, or larger rental properties and you want every legal advantage to reduce taxable income and improve ROI, this conversation will give you a clear, practical framework to talk to your CPA, attorney, and a qualified cost seg firm about your next move.

 

Episode Highlights

00:00 Introduction

01:04 What is Cost Segregation?

02:21 The importance of cost segregation for investors

03:29 ROI mindset: this is about increasing returns

04:07 How cost segregation works: understanding depreciation

05:01 Planning around depreciation schedules

06:20 When is the best time to do a cost segregation study?

07:37 The costs of a cost segregation study you need to know

08:18 Balancing cost vs. benefit with a qualified firm

09:43 Understanding the risks and considerations of a cost segregation study

10:42 Why not all properties benefit from a cost segregation study

Quotables

“At the end of the day, the ROI is something that every investor’s looking for. They want the biggest ROI possible. So why not uncover every stone, and the cost segregation study is no different.”

“You’re not in this as a charity. You’re in this as a business. And let’s find the best way to get there.”

“Not all properties benefit equally… it’s not a one-to-one transaction where just because you made a certain amount of money on one that you’re going to make that every time you do a study.”

Links

Website: REI INK Magazine https://rei-ink.com/

Website: RCN Capital https://www.rcncapital.com/podcast

 Instagram RCN Captial / rcn_capital

Email: RCN Capital info@rcncapital.com