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8858 Sun Valley Dr

8858 Sun Valley Dr

Palo Cedro, CA 96073

$749,000

4 bd · 2.5 ba · 2,225 sqft · Listed 74d ago

View on Realtor.com →
Low confidence

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)

$30,724$70,144$82,370

Few similar-size comps were found, so all comps are shown.

Median revenue of shown comps: $70,144

  • Farm house on 36 beautiful acres

    House · 4 bd · 3 ba · sleeps 16 · 0.8 mi

    • Hot tub
    • Pool
    • A/C
    • Free parking
    • +5

    Revenue $96,630ADR $955Occ ≈ 28%4.7★ (45)

    AirbnbVrbo

  • Beautiful home in Redding!

    House · 5 bd · 3 ba · sleeps 16 · 1.0 mi

    Revenue $2,184ADR $728Occ ≈ 1%5★ (0)

    Delisted

  • Quail Crossing - private country estate with pool.

    Vacation home · 5 bd · 3.5 ba · sleeps 11 · 1.4 mi

    • Pool
    • A/C
    • Free parking
    • Pets OK
    • +7

    Revenue $82,370ADR $844Occ ≈ 27%5★ (70)

    Airbnb

  • Palo Cedro 22-Acre ViewPoint Lodge

    House · 3 bd · 3 ba · sleeps 8 · 1.6 mi

    • A/C
    • Free parking
    • Wifi
    • Kitchen
    • +2

    Revenue $30,724ADR $294Occ ≈ 29%5★ (23)

    AirbnbVrbo

  • -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)

    Delisted

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
Management

Est. revenue

$57,589

NOI

$24,643

Cash flow /mo

$2,054

Cash needed

$801,960

Cash-on-cash (all cash)

3.1%

ROE (yr 1)

5.9%

Cap rate

3.3%

DSCR

—

Year-1 write-off

$197,067

Year-1 tax shield @ 32%

$63,061

Year-1 return on equity

  • Cash flow (annual)$24,643
  • Principal paydown (n/a, cash)$0
  • Appreciation at%$22,470
ROE5.9%

Tax savings aren't counted. Turn on “Count tax savings in returns” above if you can use the losses.

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$9,363
  • Insurance (STR-rated)$4,382

Cash needed to close

  • Purchase price (all cash)$749,000
  • Closing costs (4.0%)$29,960
  • Furnishing (bought new)$23,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$63,061

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

$605,000

Short-life (5/15-yr)

$172,000 · 28%

Year-1 deduction

$197,000

Year-1 tax shield @ 32%

$63,000

Land 19% (county tax record, assessed value split) · building $433,000 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).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $126,000 in year 1 (17% short-life, $40,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$95,900

  • Kitchen cabinetsdefault

    $10,700 new × 40% good × 3.15 allocation

    $13,500

  • Kitchen countertopsdefault

    $8,700 new × 40% good × 3.15 allocation

    $11,000

  • Decorative trimdefault

    $3,900 new × 40% good × 3.15 allocation

    $4,900

  • Mirrorsdefault

    $300 new × 40% good × 3.15 allocation

    $400

  • Shelvingdefault

    $1,500 new × 40% good × 3.15 allocation

    $1,900

  • Window coverings (22)default

    $5,500 new × 40% good × 3.15 allocation

    $6,900

  • Carpet, vinyl & laminate (40% of floors)default

    $5,700 new × 40% good × 3.15 allocation

    $7,200

  • Kitchen & laundry equipment plumbingdefault

    $8,300 new × 40% good × 3.15 allocation

    $10,500

  • Kitchen, laundry & data equipment electricaldefault

    $5,000 new × 40% good × 3.15 allocation

    $6,300

  • Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default

    $8,100 new × 40% good × 3.15 allocation

    $10,200

  • Furniture bought newlisting

    $23,000 new × 100% good · bought separately

    $23,000
15-year land improvements$98,900

  • Paving: driveway & walks (paved)default

    $12,200 new × 50% good × 3.15 allocation

    $19,300

  • Landscaping (typical)default

    $9,400 new × 50% good × 3.15 allocation

    $14,800

  • Patioslisting

    $10,000 new × 50% good × 3.15 allocation

    $15,800

  • Decks & porches (attached)listing

    $25,000 new × 50% good × 3.15 allocation

    $39,500

  • Fencinglisting

    $6,000 new × 50% good × 3.15 allocation

    $9,500
Building, 39-year$433,000

  • Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault

    $241,300 new × 40% good × 3.15 allocation

    $304,500

  • Building plumbing & fixturesdefault

    $25,100 new × 40% good × 3.15 allocation

    $31,600

  • Building electrical & lightingdefault

    $25,500 new × 40% good × 3.15 allocation

    $32,100

  • HVACdefault

    $25,100 new × 40% good × 3.15 allocation

    $31,600

  • Hardwood & tile floorsdefault

    $8,600 new × 40% good × 3.15 allocation

    $10,800

  • Fireplacelisting

    $2,600 new × 40% good × 3.15 allocation

    $3,300

  • Septic systemlisting

    $12,000 new × 50% good × 3.15 allocation

    $18,900

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$95,900$98,900$2,300$197,100
2$0$0$11,100$11,100
3$0$0$11,100$11,100
4$0$0$11,100$11,100
5$0$0$11,100$11,100
6+$0$0$386,300$386,300
Total$95,900$98,900$433,000$627,700

The building's share of the price ($605,000) 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, Georgia and Wisconsin 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.