Rate 7.78% = 7.03% Freddie Mac 30-yr avg (Sep 24) + 0.75% investor premium

65 Lucille Ave

Ellijay, GA 30540

$225,000

2 bd · 1.5 ba · 1,053 sqft · Listed 2d ago

View on Realtor.com →

Low confidenceNegative cash flow

Year built

1945

Sqft

1,053

Lot sqft

13,939

HOA / mo

Furnished

List date

2026-09-25T00:44:31.000000Z

Revenue

Annual revenue

$23,301

ADR

$162

Occupancy

39%

Cleaning fees (12 mo)

$7,094

Confidence

Low (22.69), 7 comps

Comp revenue range (p25 / median / p75)

$5,909$25,007$33,698

In Town. Hot Tub, Loft, Minutes to wineries
Cabin · 2 bd · 2 ba · sleeps 4 · 0.2 mi
Revenue $39,814ADR $202Occ ≈ 54%4.9★ (116)
Airbnb Vrbo
Downtown Bungalow | Walking Distance to Downtown
House · 2 bd · 2 ba · sleeps 4 · 0.3 mi
Revenue $33,298ADR $204Occ ≈ 45%4.8★ (96)
Airbnb Vrbo
Dream Ridge | Ellijay, GA
Cabin · 2 bd · 2 ba · sleeps 4 · 0.5 mi
Revenue $7,280ADR $328Occ ≈ 6%4.7★ (9)
Airbnb
Cozy Ellijay A-Frame Feel • 2BR/2BA • Fireplace, Games, Porch & Fire Pit
House · 2 bd · 2 ba · sleeps 4 · 0.5 mi
Revenue $4,538ADR $216Occ ≈ 6%—
Vrbo
Cozy Cabin•Hot Tub•Walk to Downtown
Cabin · 2 bd · 2 ba · sleeps 4 · 0.5 mi
Revenue $25,007ADR $221Occ ≈ 31%5★ (29)
Airbnb Vrbo Booking
Apple Cottage | Luxury Downtown Ellijay
House · 2 bd · 1 ba · sleeps 5 · 0.6 mi
Revenue $34,098ADR $219Occ ≈ 43%4.8★ (64)
Airbnb Vrbo
Room 2 min from downtown Ellijay
Tiny house · 2 bd · 1 ba · sleeps 4 · 0.6 mi
Revenue $1,197ADR $92Occ ≈ 4%—
Airbnb

Listing	Size	Revenue (12 mo)	ADR	Occ ≈	Rating	Distance	Links
In Town. Hot Tub, Loft, Minutes to wineries Cabin	2 bd · 2 ba · sleeps 4	$39,814	$202	54%	4.9★ (116)	0.2 mi	Airbnb Vrbo
Downtown Bungalow \| Walking Distance to Downtown House	2 bd · 2 ba · sleeps 4	$33,298	$204	45%	4.8★ (96)	0.3 mi	Airbnb Vrbo
Dream Ridge \| Ellijay, GA Cabin	2 bd · 2 ba · sleeps 4	$7,280	$328	6%	4.7★ (9)	0.5 mi	Airbnb
Cozy Ellijay A-Frame Feel • 2BR/2BA • Fireplace, Games, Porch & Fire Pit House	2 bd · 2 ba · sleeps 4	$4,538	$216	6%	—	0.5 mi	Vrbo
Cozy Cabin•Hot Tub•Walk to Downtown Cabin	2 bd · 2 ba · sleeps 4	$25,007	$221	31%	5★ (29)	0.5 mi	Airbnb Vrbo Booking
Apple Cottage \| Luxury Downtown Ellijay House	2 bd · 1 ba · sleeps 5	$34,098	$219	43%	4.8★ (64)	0.6 mi	Airbnb Vrbo
Room 2 min from downtown Ellijay Tiny house	2 bd · 1 ba · sleeps 4	$1,197	$92	4%	—	0.6 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

Financing

Term

Purchase priceDown payment %30-yr rate %Already furnishedTax bracket

Rate 7.78% = 7.03% Freddie Mac 30-yr avg (Sep 24) + 0.75% investor premium

Est. revenue

$23,301

NOI

$9,386

Cash flow /mo

-$430

Cash needed

$81,250

Cash-on-cash

-6.4%

ROE (yr 1)

3.8%

Cap rate

4.2%

DSCR

0.65

Year-1 write-off

$82,462

Year-1 tax shield @ 32%

$26,388

Year-1 return on equity

Cash flow (annual)-$5,164
Principal paydown$1,472
Appreciation at%$6,750

ROE3.8%

ROE incl. year-1 tax savings (32% bracket, STR loophole)36.2%

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

Management (20% of revenue)$4,660
Platform fees (3% of revenue)$699
Maintenance / capex (5% of revenue)$1,165
Utilities & supplies$4,200
HOA$0
Property tax$761
Insurance (STR-rated)$2,430

Cash needed to close

Down payment (25%)$56,250
Closing costs (4.0%)$9,000
Furnishing (bought new)$16,000

Tax savings if the STR loophole applies

Tax shield @ 32%$26,388

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

$208,000

Short-life (5/15-yr)

$66,000 · 32%

Year-1 deduction

$82,000

Year-1 tax shield @ 32%

$26,000

Land 8% (county tax record, market value split) · building $142,000 over 39 years · new furniture $16,000

Based on: 1,053 sq ft, built 1945, 2 bd / 1.5 ba, unfurnished, listing features (deck, flooring types, appliance list, septic).

IRS-guide safe-harbor floor: $54,000 in year 1 (18% short-life, $17,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$53,600

Kitchen cabinetsdefault
$8,100 new × 40% good × 2.17 allocation
$7,100
Kitchen countertopsdefault
$6,600 new × 40% good × 2.17 allocation
$5,800
Decorative trimdefault
$1,800 new × 40% good × 2.17 allocation
$1,600
Mirrorsdefault
$200 new × 40% good × 2.17 allocation
$100
Shelvingdefault
$900 new × 40% good × 2.17 allocation
$800
Window coverings (11)default
$2,800 new × 40% good × 2.17 allocation
$2,400
Carpet, vinyl & laminate (100% of floors)listing
$6,800 new × 40% good × 2.17 allocation
$5,900
Kitchen & laundry equipment plumbingdefault
$6,300 new × 40% good × 2.17 allocation
$5,500
Kitchen, laundry & data equipment electricaldefault
$3,800 new × 40% good × 2.17 allocation
$3,300
Appliances (range, refrigerator, washer, dryer)listing
$6,000 new × 40% good × 2.17 allocation
$5,200
Furniture bought newlisting
$16,000 new × 100% good · bought separately
$16,000

15-year land improvements$28,400

Paving: driveway & walks (paved)default
$6,700 new × 50% good × 2.17 allocation
$7,300
Landscaping (typical)default
$6,500 new × 50% good × 2.17 allocation
$7,000
Patiosdefault
$1,000 new × 50% good × 2.17 allocation
$1,100
Decks & porches (attached)listing
$11,800 new × 50% good × 2.17 allocation
$12,900

Building, 39-year$142,000

Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$114,000 new × 40% good × 2.17 allocation
$99,200
Building plumbing & fixturesdefault
$11,800 new × 40% good × 2.17 allocation
$10,300
Building electrical & lightingdefault
$10,600 new × 40% good × 2.17 allocation
$9,200
HVACdefault
$11,900 new × 40% good × 2.17 allocation
$10,300
Septic systemlisting
$12,000 new × 50% good × 2.17 allocation
$13,000

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	$53,600	$28,400	$500	$82,500
2	$0	$0	$3,600	$3,600
3	$0	$0	$3,600	$3,600
4	$0	$0	$3,600	$3,600
5	$0	$0	$3,600	$3,600
6+	$0	$0	$127,000	$127,000
Total	$53,600	$28,400	$142,000	$224,000

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: Georgia disallows bonus depreciation, Ohio adds back 5/6 of it, and Tennessee has no personal income tax. Not tax advice.

Market note

Fannin and Gilmer counties require STR registration and lodging tax; no cap found. Blue Ridge and Ellijay city limits have their own rules; most cabins are in unincorporated county.