8858 Sun Valley Dr
Palo Cedro, CA 96073
$754,950
4 bd · 2.5 ba · 2,225 sqft · Listed 29d ago
View on Realtor.com →Year built
1975
Sqft
2,225
Lot sqft
230,868
HOA / mo
None
Furnished
No
List date
2026-08-31T18:07:55.000000Z
Revenue
Annual revenue
$57,589
ADR
$525
Occupancy
30%
Cleaning fees (12 mo)
$10,389
Confidence
Low (30.88), 5 comps
Comp revenue range (p25 / median / p75)
Beautiful home in Redding!
House · 5 bd · 3 ba · sleeps 16 · 1.0 mi
Revenue $2,184ADR $728Occ ≈ 1%5★ (0)
Quail Crossing - private country estate with pool.
Vacation home · 5 bd · 3.5 ba · sleeps 11 · 1.4 mi
Revenue $82,370ADR $844Occ ≈ 27%5★ (70)
-The Bluebird- Located on our Flower Farm
Farm stay · 4 bd · 2 ba · sleeps 6 · 2.0 mi
Revenue $70,144ADR $494Occ ≈ 39%5★ (11)
| Listing | Size | Revenue (12 mo) | ADR | Occ ≈ | Rating | Distance | Links |
|---|---|---|---|---|---|---|---|
Farm house on 36 beautiful acres House | 4 bd · 3 ba · sleeps 16 | $96,630 | $955 | 28% | 4.7★ (45) | 0.8 mi | AirbnbVrbo |
Beautiful home in Redding! House | 5 bd · 3 ba · sleeps 16 | $2,184 | $728 | 1% | 5★ (0) | 1.0 mi | Vrbo |
Quail Crossing - private country estate with pool. Vacation home | 5 bd · 3.5 ba · sleeps 11 | $82,370 | $844 | 27% | 5★ (70) | 1.4 mi | Airbnb |
Palo Cedro 22-Acre ViewPoint Lodge House | 3 bd · 3 ba · sleeps 8 | $30,724 | $294 | 29% | 5★ (23) | 1.6 mi | AirbnbVrbo |
-The Bluebird- Located on our Flower Farm Farm stay | 4 bd · 2 ba · sleeps 6 | $70,144 | $494 | 39% | 5★ (11) | 2.0 mi | Airbnb |
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
Rate 7.78% = 7.03% Freddie Mac 30-yr avg (Sep 24) + 0.75% investor premium
Est. revenue
$57,589
NOI
$24,543
Cash flow /mo
-$2,023
Cash needed
$241,936
Cash-on-cash
-10.0%
ROE (yr 1)
1.4%
Cap rate
3.3%
DSCR
0.50
Year-1 write-off
$198,450
Year-1 tax shield @ 32%
$63,504
Year-1 return on equity
- Cash flow (annual)-$24,275
- Principal paydown$4,940
- Appreciation at%$22,649
Opex, cash-needed & tax-savings breakdown
Annual operating expenses
- Management (20% of revenue)$11,518
- Platform fees (3% of revenue)$1,728
- Maintenance / capex (5% of revenue)$2,879
- Utilities & supplies$4,200
- HOA$0
- Property tax$9,437
- Insurance (STR-rated)$4,416
Cash needed to close
- Down payment (25%)$188,738
- Closing costs (4.0%)$30,198
- Furnishing (bought new)$23,000
Tax savings if the STR loophole applies
- Tax shield @ 32%$63,504
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
$610,000
Short-life (5/15-yr)
$173,000 · 28%
Year-1 deduction
$198,000
Year-1 tax shield @ 32%
$64,000
Land 19% (county tax record, assessed value split) · building $436,000 over 39 years · new furniture $23,000
Based on: 2,225 sq ft, built 1975, 4 bd / 2.5 ba, unfurnished, listing features (deck, patio, fence, fireplace, septic).
IRS-guide safe-harbor floor: $127,000 in year 1 (17% short-life, $41,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.
- $13,600
Kitchen cabinetsdefault
$10,700 new × 40% good × 3.18 allocation
- $11,100
Kitchen countertopsdefault
$8,700 new × 40% good × 3.18 allocation
- $5,000
Decorative trimdefault
$3,900 new × 40% good × 3.18 allocation
- $400
Mirrorsdefault
$300 new × 40% good × 3.18 allocation
- $1,900
Shelvingdefault
$1,500 new × 40% good × 3.18 allocation
- $7,000
Window coverings (22)default
$5,500 new × 40% good × 3.18 allocation
- $7,300
Carpet, vinyl & laminate (40% of floors)default
$5,700 new × 40% good × 3.18 allocation
- $10,600
Kitchen & laundry equipment plumbingdefault
$8,300 new × 40% good × 3.18 allocation
- $6,400
Kitchen, laundry & data equipment electricaldefault
$5,000 new × 40% good × 3.18 allocation
- $10,300
Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default
$8,100 new × 40% good × 3.18 allocation
- $23,000
Furniture bought newlisting
$23,000 new × 100% good · bought separately
- $19,400
Paving: driveway & walks (paved)default
$12,200 new × 50% good × 3.18 allocation
- $15,000
Landscaping (typical)default
$9,400 new × 50% good × 3.18 allocation
- $15,900
Patioslisting
$10,000 new × 50% good × 3.18 allocation
- $39,800
Decks & porches (attached)listing
$25,000 new × 50% good × 3.18 allocation
- $9,500
Fencinglisting
$6,000 new × 50% good × 3.18 allocation
- $306,900
Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$241,300 new × 40% good × 3.18 allocation
- $31,900
Building plumbing & fixturesdefault
$25,100 new × 40% good × 3.18 allocation
- $32,400
Building electrical & lightingdefault
$25,500 new × 40% good × 3.18 allocation
- $31,900
HVACdefault
$25,100 new × 40% good × 3.18 allocation
- $10,900
Hardwood & tile floorsdefault
$8,600 new × 40% good × 3.18 allocation
- $3,300
Fireplacelisting
$2,600 new × 40% good × 3.18 allocation
- $19,100
Septic systemlisting
$12,000 new × 50% good × 3.18 allocation
About the property
Depreciation schedule: typical cost seg study
| Year | 5-yr | 15-yr | Building | Total |
|---|---|---|---|---|
| 1 | $96,500 | $99,600 | $2,300 | $198,400 |
| 2 | $0 | $0 | $11,200 | $11,200 |
| 3 | $0 | $0 | $11,200 | $11,200 |
| 4 | $0 | $0 | $11,200 | $11,200 |
| 5 | $0 | $0 | $11,200 | $11,200 |
| 6+ | $0 | $0 | $389,300 | $389,300 |
| Total | $96,500 | $99,600 | $436,400 | $632,600 |
The building's share of the price ($610,000) is 3.2x our depreciated replacement cost of the home ($192,000). 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.