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

70 Galloway St

Epworth, GA 30541

$449,900

3 bd · 2.5 ba · 1,500 sqft · Listed 10d ago

View on Realtor.com →

Low confidenceNegative cash flow

Year built

2026

Sqft

1,500

Lot sqft

23,958

HOA / mo

None

Furnished

List date

2026-09-17T15:39:52.000000Z

Revenue

Annual revenue

$39,916

ADR

$256

Occupancy

43%

Cleaning fees (12 mo)

$5,975

Confidence

Low (20.65), 6 comps

Comp revenue range (p25 / median / p75)

$13,512$42,175$57,457

Modern Luxury Fightingtown Creek Cabin
Cabin · 3 bd · 3.5 ba · sleeps 8 · 0.3 mi
Revenue $51,629ADR $340Occ ≈ 42%5★ (55)
Airbnb
Morgan Trail - Stunning Mountain Masterpiece
Vacation home · 3 bd · 3 ba · sleeps 6 · 0.3 mi
Revenue $87,685ADR $342Occ ≈ 70%—
Booking
Unique rustic farmhouse with games and charm
Apartment · 3 bd · 2 ba · sleeps 8 · 0.3 mi
Revenue $7,109ADR $197Occ ≈ 10%5★ (3)
Airbnb Vrbo Booking
Luxe 2,500 Sq ft Historic Retreat-Near Blue Ridge
Apartment · 3 bd · 2 ba · sleeps 8 · 0.3 mi
Revenue $4,612ADR $197Occ ≈ 6%5★ (3)
Airbnb Booking
Altitude Adjustment
Vacation home · 3 bd · 2 ba · sleeps 6 · 0.4 mi
Revenue $32,721ADR $424Occ ≈ 21%—
Booking
Mtn Views~Sleeps 8~Hot Tub~Game Room~Fireplace
House · 3 bd · 3 ba · sleeps 8 · 0.6 mi
Revenue $59,399ADR $322Occ ≈ 51%5★ (14)
Airbnb Vrbo Booking

Listing	Size	Revenue (12 mo)	ADR	Occ ≈	Rating	Distance	Links
Modern Luxury Fightingtown Creek Cabin Cabin	3 bd · 3.5 ba · sleeps 8	$51,629	$340	42%	5★ (55)	0.3 mi	Airbnb
Morgan Trail - Stunning Mountain Masterpiece Vacation home	3 bd · 3 ba · sleeps 6	$87,685	$342	70%	—	0.3 mi	Booking
Unique rustic farmhouse with games and charm Apartment	3 bd · 2 ba · sleeps 8	$7,109	$197	10%	5★ (3)	0.3 mi	Airbnb Vrbo Booking
Luxe 2,500 Sq ft Historic Retreat-Near Blue Ridge Apartment	3 bd · 2 ba · sleeps 8	$4,612	$197	6%	5★ (3)	0.3 mi	Airbnb Booking
Altitude Adjustment Vacation home	3 bd · 2 ba · sleeps 6	$32,721	$424	21%	—	0.4 mi	Booking
Mtn Views~Sleeps 8~Hot Tub~Game Room~Fireplace House	3 bd · 3 ba · sleeps 8	$59,399	$322	51%	5★ (14)	0.6 mi	Airbnb Vrbo Booking

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

$39,916

NOI

$19,699

Cash flow /mo

-$783

Cash needed

$149,971

Cash-on-cash

-6.3%

ROE (yr 1)

4.7%

Cap rate

4.4%

DSCR

0.68

Year-1 write-off

$56,046

Year-1 tax shield @ 32%

$17,935

Year-1 return on equity

Cash flow (annual)-$9,393
Principal paydown$2,944
Appreciation at%$13,497

ROE4.7%

ROE incl. year-1 tax savings (32% bracket, STR loophole)16.7%

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

Management (20% of revenue)$7,983
Platform fees (3% of revenue)$1,197
Maintenance / capex (5% of revenue)$1,996
Utilities & supplies$4,200
HOA$0
Property tax$49
Insurance (STR-rated)$4,791

Cash needed to close

Down payment (25%)$112,475
Closing costs (4.0%)$17,996
Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

Tax shield @ 32%$17,935

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

$166,000

Short-life (5/15-yr)

$36,000 · 22%

Year-1 deduction

$56,000

Year-1 tax shield @ 32%

$18,000

Land 63% (county tax record, market value split) · building $130,000 over 39 years · new furniture $20,000

Based on: 1,500 sq ft, built 2026, 3 bd / 2.5 ba, unfurnished, listing features (fireplace, flooring types, appliance list, septic).

IRS-guide safe-harbor floor: $44,000 in year 1 (14% short-life, $14,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$45,100

Kitchen cabinetsdefault
$9,100 new × 100% good × 0.56 allocation
$5,100
Kitchen countertopsdefault
$7,400 new × 100% good × 0.56 allocation
$4,200
Decorative trimdefault
$2,600 new × 100% good × 0.56 allocation
$1,500
Mirrorsdefault
$300 new × 100% good × 0.56 allocation
$200
Shelvingdefault
$1,200 new × 100% good × 0.56 allocation
$700
Window coverings (15)default
$3,800 new × 100% good × 0.56 allocation
$2,100
Carpet, vinyl & laminate (50% of floors)listing
$4,800 new × 100% good × 0.56 allocation
$2,700
Kitchen & laundry equipment plumbingdefault
$7,100 new × 100% good × 0.56 allocation
$4,000
Kitchen, laundry & data equipment electricaldefault
$4,300 new × 100% good × 0.56 allocation
$2,400
Appliances (range, dishwasher, refrigerator)listing
$5,000 new × 100% good × 0.56 allocation
$2,800
Furniture bought newlisting
$19,500 new × 100% good · bought separately
$19,500

15-year land improvements$10,500

Paving: driveway & walks (paved)default
$8,000 new × 100% good × 0.56 allocation
$4,500
Landscaping (typical)default
$7,700 new × 100% good × 0.56 allocation
$4,300
Patiosdefault
$1,500 new × 100% good × 0.56 allocation
$800
Decks & porches (attached)default
$1,500 new × 100% good × 0.56 allocation
$800

Building, 39-year$130,300

Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$162,400 new × 100% good × 0.56 allocation
$91,300
Building plumbing & fixturesdefault
$16,800 new × 100% good × 0.56 allocation
$9,500
Building electrical & lightingdefault
$16,300 new × 100% good × 0.56 allocation
$9,200
HVACdefault
$16,900 new × 100% good × 0.56 allocation
$9,500
Hardwood & tile floorsdefault
$4,800 new × 100% good × 0.56 allocation
$2,700
Fireplacelisting
$2,600 new × 100% good × 0.56 allocation
$1,500
Septic systemlisting
$12,000 new × 100% good × 0.56 allocation
$6,700

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	$45,100	$10,500	$400	$56,000
2	$0	$0	$3,300	$3,300
3	$0	$0	$3,300	$3,300
4	$0	$0	$3,300	$3,300
5	$0	$0	$3,300	$3,300
6+	$0	$0	$116,500	$116,500
Total	$45,100	$10,500	$130,300	$185,900

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.