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1545 Ernest McMahan Rd

1545 Ernest McMahan Rd

Sevierville, TN 37862

$999,000

3 bd · 2.5 ba · 1,985 sqft · Listed 1d ago

View on Realtor.com →

Year built

1985

Sqft

1,985

Lot sqft

311,454

HOA / mo

$0

Furnished

No

List date

2026-10-02T20:09:36.000000Z

Revenue

Annual revenue

$42,097

ADR

$224

Occupancy

51%

Cleaning fees (12 mo)

$6,283

Confidence

Med (54.85), 9 comps

Comp revenue range (p25 / median / p75)

$23,158$37,023$48,803

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

Median revenue of shown comps: $37,023

  • Mntn_Cabin_HotTub_Theatre_GameRoom_FirePit_BigYard

    Cabin · 4 bd · 2 ba · sleeps 16 · 0.2 mi

    Revenue $37,843ADR $292Occ ≈ 36%4.5★ (12)

    AirbnbVrbo

  • Be Our Guest! Large fenced yard! Pet/kid friendly

    House · 3 bd · 2 ba · sleeps 7 · 0.3 mi

    Revenue $50,293ADR $211Occ ≈ 65%4.9★ (41)

    AirbnbVrboBooking

  • Riverside Escape, King Suite, and Queen Suite.

    House · 2 bd · 2 ba · sleeps 4 · 0.5 mi

    Revenue $37,023ADR $128Occ ≈ 79%4.8★ (32)

    AirbnbVrboBooking

  • Reed's Riverside Retreatw/ 3 king beds and Hot Tub

    House · 3 bd · 2 ba · sleeps 8 · 0.5 mi

    Revenue $28,672ADR $255Occ ≈ 31%4.8★ (22)

    AirbnbVrbo

  • Trevors Riverfront Retreat

    House · 4 bd · 3 ba · sleeps 10 · 0.5 mi

    Revenue $19,853ADR $305Occ ≈ 18%4.5★ (20)

    AirbnbVrbo

  • Ronnie's Riverfront Retreat w/ Hot tub & Kayaks

    House · 4 bd · 2 ba · sleeps 10 · 0.5 mi

    Revenue $69,878ADR $339Occ ≈ 56%4.8★ (263)

    AirbnbVrbo

  • Cyndie's Creekside Cottage w/ 3 King Beds &Hot Tub

    House · 3 bd · 2 ba · sleeps 8 · 0.6 mi

    Revenue $23,158ADR $268Occ ≈ 24%5★ (18)

    AirbnbVrbo

  • The "Bird's Nest" and Trees

    House · 4 bd · 2.5 ba · sleeps 12 · 0.7 mi

    Revenue $19,471ADR $436Occ ≈ 12%4.7★ (65)

    Vrbo

  • Peach Tree Haven | Deck | Bonfire | Ideal Location

    House · 4 bd · 2.5 ba · sleeps 8 · 0.7 mi

    Revenue $48,803ADR $366Occ ≈ 37%4.8★ (6)

    AirbnbVrboBooking

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

$42,097

NOI

$18,922

Cash flow /mo

$1,577

Cash needed

$1,058,460

Cash-on-cash (all cash)

1.8%

ROE (yr 1)

4.6%

Cap rate

1.9%

DSCR

—

Year-1 write-off

$242,579

Year-1 tax shield @ 32%

$77,625

Year-1 return on equity

  • Cash flow (annual)$18,922
  • Principal paydown (n/a, cash)$0
  • Appreciation at%$29,970
ROE4.6%

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)$8,419
  • Platform fees (3% of revenue)$1,263
  • Maintenance / capex (5% of revenue)$2,105
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$1,194
  • Insurance (STR-rated)$5,994

Cash needed to close

  • Purchase price (all cash)$999,000
  • Closing costs (4.0%)$39,960
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$77,625

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

$884,000

Short-life (5/15-yr)

$222,000 · 25%

Year-1 deduction

$243,000

Year-1 tax shield @ 32%

$78,000

Land 12% (county tax record, market value split) · building $661,000 over 39 years · new furniture $20,000

Based on: 1,985 sq ft, built 1985, 3 bd / 2.5 ba, unfurnished, listing features (deck, fireplace, flooring types, appliance list, septic).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $134,000 in year 1 (13% short-life, $43,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$129,600

  • Kitchen cabinetsdefault

    $10,200 new × 40% good × 5.29 allocation

    $21,500

  • Kitchen countertopsdefault

    $8,300 new × 40% good × 5.29 allocation

    $17,600

  • Decorative trimdefault

    $3,500 new × 40% good × 5.29 allocation

    $7,400

  • Mirrorsdefault

    $300 new × 40% good × 5.29 allocation

    $600

  • Shelvingdefault

    $1,200 new × 40% good × 5.29 allocation

    $2,500

  • Window coverings (20)default

    $5,000 new × 40% good × 5.29 allocation

    $10,600

  • Carpet, vinyl & laminate (25% of floors)listing

    $3,200 new × 40% good × 5.29 allocation

    $6,800

  • Kitchen & laundry equipment plumbingdefault

    $7,900 new × 40% good × 5.29 allocation

    $16,700

  • Kitchen, laundry & data equipment electricaldefault

    $4,800 new × 40% good × 5.29 allocation

    $10,100

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

    $7,700 new × 40% good × 5.29 allocation

    $16,300

  • Furniture bought newlisting

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

    $19,500
15-year land improvements$112,300

  • Paving: driveway & walks (paved)default

    $9,200 new × 50% good × 5.29 allocation

    $24,400

  • Landscaping (typical)default

    $8,900 new × 50% good × 5.29 allocation

    $23,500

  • Patiosdefault

    $2,000 new × 50% good × 5.29 allocation

    $5,200

  • Decks & porches (attached)listing

    $22,300 new × 50% good × 5.29 allocation

    $59,100
Building, 39-year$661,500

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

    $215,400 new × 40% good × 5.29 allocation

    $456,100

  • Building plumbing & fixturesdefault

    $22,300 new × 40% good × 5.29 allocation

    $47,300

  • Building electrical & lightingdefault

    $22,400 new × 40% good × 5.29 allocation

    $47,500

  • HVACdefault

    $22,400 new × 40% good × 5.29 allocation

    $47,400

  • Hardwood & tile floorsdefault

    $9,600 new × 40% good × 5.29 allocation

    $20,300

  • Fireplaces (2)listing

    $5,300 new × 40% good × 5.29 allocation

    $11,100

  • Septic systemlisting

    $12,000 new × 50% good × 5.29 allocation

    $31,800

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$129,600$112,300$700$242,600
2$0$0$17,000$17,000
3$0$0$17,000$17,000
4$0$0$17,000$17,000
5$0$0$17,000$17,000
6+$0$0$592,900$592,900
Total$129,600$112,300$661,500$903,300

The building's share of the price ($884,000) is 5.3x our depreciated replacement cost of the home ($167,000). 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

STR allowed in most of Sevier County; inside Gatlinburg city limits only in overnight-rental zones.

1545 Ernest McMahan Rd: $999K Airbnb Analysis