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

259 Red Bush School Rd

259 Red Bush School Rd

Blue Ridge, GA 30513

$899,000

3 bd · 3.5 ba · 2,800 sqft · Listed 23d ago

View on Realtor.com →
Negative cash flow

Year built

2020

Sqft

2,800

Lot sqft

112,385

HOA / mo

None

Furnished

No

List date

2026-09-04T13:58:12.000000Z

Revenue

Annual revenue

$60,178

ADR

$286

Occupancy

58%

Cleaning fees (12 mo)

$11,564

Confidence

Med (63.58), 10 comps

Comp revenue range (p25 / median / p75)

$45,168$59,660$66,623

  • Cabin in Blue Ridge w/Game room, Hot Tub, Fire pit

    Cabin · 3 bd · 3 ba · sleeps 10 · 0.2 mi

    Revenue $35,202ADR $368Occ ≈ 26%4.9★ (10)

    AirbnbVrbo

  • Fireside - Rustic charm yet luxurious & fun

    Cabin · 3 bd · 3 ba · sleeps 6 · 0.3 mi

    Revenue $55,711ADR $253Occ ≈ 60%5★ (359)

    AirbnbVrbo

  • Chestnut Ridge - Mountain views & hot tub

    Cabin · 3 bd · 3 ba · sleeps 8 · 0.4 mi

    Revenue $94,318ADR $404Occ ≈ 64%4.8★ (176)

    AirbnbVrbo

  • Ultimate Mountain Cabin Getaway - Bear to Dream

    Cabin · 3 bd · 3 ba · sleeps 10 · 0.4 mi

    Revenue $61,532ADR $334Occ ≈ 50%5★ (62)

    Airbnb

  • Family Escape: Outdoor Fireplace + Game Room

    Cabin · 3 bd · 3 ba · sleeps 10 · 0.5 mi

    Revenue $57,788ADR $309Occ ≈ 51%4.9★ (38)

    AirbnbVrbo

  • Heavenly Escape | Book 2 nights, stay 3 nights!

    Cabin · 3 bd · 3 ba · sleeps 10 · 0.5 mi

    Revenue $67,336ADR $0Occ ≈ —5★ (62)

    AirbnbVrboBooking

  • Blue Ridge Mountain View Cabin, Bear Hammock

    Cabin · 3 bd · 3 ba · sleeps 6 · 0.5 mi

    Revenue $41,653ADR $198Occ ≈ 58%5★ (238)

    Airbnb

  • Mountain views and close to Downtown Blue Ridge!

    Cabin · 3 bd · 3 ba · sleeps 6 · 0.6 mi

    Revenue $22,581ADR $306Occ ≈ 20%5★ (13)

    Vrbo

  • Toccoa River Fish Camp

    Cabin · 3 bd · 3.5 ba · sleeps 8 · 0.6 mi

    Revenue $81,046ADR $509Occ ≈ 44%5★ (60)

    AirbnbVrbo

  • Fenced Yard, Hot tub, Firepit, View, Close to town

    Cabin · 3 bd · 3 ba · sleeps 8 · 0.7 mi

    Revenue $64,482ADR $455Occ ≈ 39%5★ (76)

    AirbnbVrbo

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

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

Est. revenue

$60,178

NOI

$27,355

Cash flow /mo

-$2,565

Cash needed

$280,210

Cash-on-cash

-11.0%

ROE (yr 1)

0.7%

Cap rate

3.0%

DSCR

0.47

Year-1 write-off

$141,499

Year-1 tax shield @ 32%

$45,280

Year-1 return on equity

  • Cash flow (annual)-$30,778
  • Principal paydown$5,883
  • Appreciation at%$26,970
ROE0.7%
ROE incl. year-1 tax savings (32% bracket, STR loophole)16.9%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$12,036
  • Platform fees (3% of revenue)$1,805
  • Maintenance / capex (5% of revenue)$3,009
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$2,199
  • Insurance (STR-rated)$9,574

Cash needed to close

  • Down payment (25%)$224,750
  • Closing costs (4.0%)$35,960
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$45,280

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

$826,000

Short-life (5/15-yr)

$120,000 · 15%

Year-1 deduction

$141,000

Year-1 tax shield @ 32%

$45,000

Land 8% (county tax record, market value split) · building $706,000 over 39 years · new furniture $20,000

Based on: 2,800 sq ft, built 2020, 3 bd / 3.5 ba, unfurnished, listing features (fireplace, flooring types, appliance list, septic).

IRS-guide safe-harbor floor: $98,000 in year 1 (9% short-life, $31,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$94,500

  • Kitchen cabinetsdefault

    $11,900 new × 76% good × 1.87 allocation

    $17,000

  • Kitchen countertopsdefault

    $9,800 new × 76% good × 1.87 allocation

    $13,900

  • Decorative trimdefault

    $4,900 new × 76% good × 1.87 allocation

    $7,000

  • Mirrorsdefault

    $500 new × 50% good × 1.87 allocation

    $400

  • Shelvingdefault

    $1,200 new × 76% good × 1.87 allocation

    $1,700

  • Window coverings (28)default

    $7,000 new × 40% good × 1.87 allocation

    $5,200

  • Kitchen & laundry equipment plumbingdefault

    $9,300 new × 88% good × 1.87 allocation

    $15,300

  • Kitchen, laundry & data equipment electricaldefault

    $5,600 new × 88% good × 1.87 allocation

    $9,200

  • Appliances (range, microwave, dishwasher, refrigerator)listing

    $5,700 new × 50% good × 1.87 allocation

    $5,300

  • Furniture bought newlisting

    $19,500 new × 100% good · bought separately

    $19,500
15-year land improvements$44,700

  • Paving: driveway & walks (paved)default

    $11,000 new × 76% good × 1.87 allocation

    $15,600

  • Landscaping (typical)default

    $10,600 new × 76% good × 1.87 allocation

    $15,000

  • Patiosdefault

    $2,800 new × 76% good × 1.87 allocation

    $3,900

  • Decks & porches (attached)default

    $2,800 new × 70% good × 1.87 allocation

    $3,600

  • Gazebo / pergolalisting

    $5,000 new × 70% good × 1.87 allocation

    $6,500
Building, 39-year$705,800

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

    $304,300 new × 90% good × 1.87 allocation

    $512,200

  • Building plumbing & fixturesdefault

    $31,600 new × 88% good × 1.87 allocation

    $52,000

  • Building electrical & lightingdefault

    $32,800 new × 88% good × 1.87 allocation

    $53,900

  • HVACdefault

    $31,500 new × 70% good × 1.87 allocation

    $41,300

  • Hardwood & tile floorsdefault

    $18,000 new × 76% good × 1.87 allocation

    $25,600

  • Fireplacelisting

    $2,600 new × 76% good × 1.87 allocation

    $3,700

  • Septic systemlisting

    $12,000 new × 76% good × 1.87 allocation

    $17,100

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$94,500$44,700$2,300$141,500
2$0$0$18,100$18,100
3$0$0$18,100$18,100
4$0$0$18,100$18,100
5$0$0$18,100$18,100
6+$0$0$631,200$631,200
Total$94,500$44,700$705,800$845,100

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.