8707 Knobhill Cir

Redding, CA 96001

$1,145,000

4 bd · 2.5 ba · 3,300 sqft · Listed 19d ago

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Low confidence

Year built

1989

Sqft

3,300

Lot sqft

130,680

HOA / mo

Furnished

List date

2026-09-10T15:33:37.000000Z

Revenue

Annual revenue

$100,367

ADR

$491

Occupancy

56%

Cleaning fees (12 mo)

$12,702

Confidence

Low (—), 4 comps

Comp revenue range (p25 / median / p75)

$75,353$85,201$96,517

Private Lake House with Pool and Sauna
House · 3 bd · 2 ba · sleeps 10 · 1.2 mi
Revenue $63,820ADR $419Occ ≈ 42%4.9★ (28)
Airbnb Vrbo
Montgomery Ranch - Main House
Vacation home · 3 bd · 2 ba · sleeps 10 · 1.3 mi
Revenue $79,197ADR $595Occ ≈ 36%—
Booking
Paradise Awaits You
House · 3 bd · 3.5 ba · sleeps 6 · 1.7 mi
Revenue $91,205ADR $402Occ ≈ 62%5★ (32)
Airbnb
11 Acres, Pool, Fire Pit, Hot Tub, Starlink, EV
House · 4 bd · 3 ba · sleeps 10 · 1.8 mi
Revenue $112,453ADR $584Occ ≈ 53%5★ (46)
Airbnb Vrbo

Listing	Size	Revenue (12 mo)	ADR	Occ ≈	Rating	Distance	Links
Private Lake House with Pool and Sauna House	3 bd · 2 ba · sleeps 10	$63,820	$419	42%	4.9★ (28)	1.2 mi	Airbnb Vrbo
Montgomery Ranch - Main House Vacation home	3 bd · 2 ba · sleeps 10	$79,197	$595	36%	—	1.3 mi	Booking
Paradise Awaits You House	3 bd · 3.5 ba · sleeps 6	$91,205	$402	62%	5★ (32)	1.7 mi	Airbnb
11 Acres, Pool, Fire Pit, Hot Tub, Starlink, EV House	4 bd · 3 ba · sleeps 10	$112,453	$584	53%	5★ (46)	1.8 mi	Airbnb Vrbo

Revenue and nightly rate (ADR) are trailing-12-month figures per listing. Occupancy is estimated as revenue ÷ ADR ÷ 365 and can read high when revenue includes cleaning fees.

Cash flow calculator

Financing

Purchase priceAlready furnishedTax bracket

Est. revenue

$100,367

NOI

$48,771

Cash flow /mo

$4,064

Cash needed

$1,213,800

Cash-on-cash (all cash)

4.0%

ROE (yr 1)

6.8%

Cap rate

4.3%

DSCR

—

Year-1 write-off

$272,733

Year-1 tax shield @ 32%

$87,274

Year-1 return on equity

Cash flow (annual)$48,771
Principal paydown (n/a, cash)$0
Appreciation at%$34,350

ROE6.8%

ROE incl. year-1 tax savings (32% bracket, STR loophole)14.0%

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

Management (20% of revenue)$20,073
Platform fees (3% of revenue)$3,011
Maintenance / capex (5% of revenue)$5,018
Utilities & supplies$4,200
HOA$0
Property tax$14,313
Insurance (STR-rated)$6,698

Cash needed to close

Purchase price (all cash)$1,145,000
Closing costs (4.0%)$45,800
Furnishing (bought new)$23,000

Tax savings if the STR loophole applies

Tax shield @ 32%$87,274

Property tax, insurance rate and the land/building split come from this listing's county tax record; other assumptions match the daily feed (see tasks/plan.md).

The write-off comes from the cost segregation estimate below. Not tax advice.

Cost segregation estimate

An estimate from the listing: every part of the home is priced from national construction costs, less wear for age, and the price (less land) is spread over the parts in proportion. The headline is what a typical cost seg study would claim for this property. The answers below are optional refinements.

Depreciable basis

$896,000

Short-life (5/15-yr)

$248,000 · 28%

Year-1 deduction

$273,000

Year-1 tax shield @ 32%

$87,000

Land 22% (county tax record, assessed value split) · building $648,000 over 39 years · new furniture $23,000

Based on: 3,300 sq ft, built 1989, 4 bd / 2.5 ba, unfurnished, listing features (hot tub, pool, fireplace, flooring types, septic).

IRS-guide safe-harbor floor: $228,000 in year 1 (23% short-life, $73,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$115,500

Kitchen cabinetsdefault
$13,000 new × 40% good × 3.17 allocation
$16,500
Kitchen countertopsdefault
$10,700 new × 40% good × 3.17 allocation
$13,500
Decorative trimdefault
$5,800 new × 40% good × 3.17 allocation
$7,300
Mirrorsdefault
$300 new × 40% good × 3.17 allocation
$400
Shelvingdefault
$1,500 new × 40% good × 3.17 allocation
$1,900
Window coverings (33)default
$8,300 new × 40% good × 3.17 allocation
$10,500
Kitchen & laundry equipment plumbingdefault
$10,100 new × 40% good × 3.17 allocation
$12,900
Kitchen, laundry & data equipment electricaldefault
$6,100 new × 40% good × 3.17 allocation
$7,800
Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default
$8,100 new × 40% good × 3.17 allocation
$10,300
Hot tub (freestanding)listing
$9,000 new × 40% good × 3.17 allocation
$11,400
Furniture bought newlisting
$23,000 new × 100% good · bought separately
$23,000

15-year land improvements$155,200

Paving: driveway & walks (paved)default
$14,900 new × 50% good × 3.17 allocation
$23,600
Landscaping (typical)default
$11,500 new × 50% good × 3.17 allocation
$18,200
Patiosdefault
$3,300 new × 50% good × 3.17 allocation
$5,200
Decks & porches (attached)default
$3,300 new × 50% good × 3.17 allocation
$5,200
Pool (in-ground)listing
$65,000 new × 50% good × 3.17 allocation
$103,100

Building, 39-year$648,400

Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$358,800 new × 40% good × 3.17 allocation
$455,100
Building plumbing & fixturesdefault
$37,200 new × 40% good × 3.17 allocation
$47,200
Building electrical & lightingdefault
$39,100 new × 40% good × 3.17 allocation
$49,600
HVACdefault
$37,200 new × 40% good × 3.17 allocation
$47,200
Hardwood & tile floorsdefault
$21,200 new × 40% good × 3.17 allocation
$26,900
Fireplacelisting
$2,600 new × 40% good × 3.17 allocation
$3,300
Septic systemlisting
$12,000 new × 50% good × 3.17 allocation
$19,000

About the property

Sold furnishedGame roomHot tubPoolDeckDrivewayLandscapingFencedIrrigationLong-term rental (27.5-yr)Carpet / vinyl / laminate %Placed in serviceClosing costs $ (adds to basis)Land %Bonus depreciation %

Depreciation schedule: typical cost seg study

Year	5-yr	15-yr	Building	Total
1	$115,500	$155,200	$2,100	$272,700
2	$0	$0	$16,600	$16,600
3	$0	$0	$16,600	$16,600
4	$0	$0	$16,600	$16,600
5	$0	$0	$16,600	$16,600
6+	$0	$0	$579,900	$579,900
Total	$115,500	$155,200	$648,400	$919,100

The building's share of the price ($896,000) is 3.2x our depreciated replacement cost of the home ($283,000). The IRS guide treats a gap this size as a reason to review the land share: if land is worth more than the county ratio says, the basis and the write-off are smaller.

Model-based estimate, not an engineered cost segregation study. The IRS doesn’t approve studies; get a professional study before filing. Using these losses against W-2 income needs the short-term rental exception (average stay ≤7 days + material participation). The 39-year building life applies because stays average under 30 days, a separate test (27.5 years for a long-term rental). Federal only: California and Georgia disallow bonus depreciation, Ohio adds back 5/6 of it, and Tennessee has no personal income tax. Not tax advice.

Market note

Rules differ by jurisdiction. City of Redding caps whole-home vacation rentals at 400 with a 600 ft spacing rule (300 ft with a physical buffer), and its permit is NOT transferable to a new owner. Shasta Lake city and unincorporated Shasta County allow permitted rentals with no cap found, but permits also do not transfer on sale. Lodging tax ~10% plus a 2% tourism assessment in Redding. Verify parcel eligibility with the city or county before you buy.