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Rate 8.15% = 7.40% Freddie Mac 30-yr avg (Oct 15) + 0.75% investor premium

1559 Rainbow Ridge Rd

1559 Rainbow Ridge Rd

Sevierville, TN 37862

$999,999

5 bd · 5.5 ba · 3,936 sqft · Listed today

View on Realtor.com →
Negative cash flow

Year built

2007

Sqft

3,936

Lot sqft

—

HOA / mo

$100

Furnished

No

List date

2026-10-22T04:31:27.000000Z

Revenue

Annual revenue

$94,744

ADR

$452

Occupancy

57%

Cleaning fees (12 mo)

$17,021

Confidence

Low (45.4), 18 comps

Comp revenue range (p25 / median / p75)

$52,737$75,113$100,759

Median revenue of shown comps: $75,113

  • Cowboy Up Lodge! Fire Pit | Hot Tub | Pigeon Forge

    Cabin · 5 bd · 5 ba · sleeps 14 · 128 ft

    Revenue $91,133ADR $433Occ ≈ 58%4.7★ (41)

    AirbnbVrbo

  • Game Room, Arcade, Theater, Hot Tub | Skycrest

    House · 5 bd · 5 ba · sleeps 12 · 187 ft

    Revenue $51,421ADR $424Occ ≈ 33%4.2★ (4)

    Airbnb

  • Cloud 9 Lodge: Private Heated Indoor Pool, Theater & Game Room, Sleeps 12

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 292 ft

    Revenue $2,559ADR $365Occ ≈ 2%—

    Vrbo

  • Last Min Sale! Heated Pool, Views, Theatre, Hottub

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 312 ft

    Revenue $34,405ADR $503Occ ≈ 19%4.5★ (9)

    AirbnbVrbo

  • Amazing 5BD Pool Lodge | Theater + Hot Tub + Games

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 364 ft

    Revenue $77,728ADR $480Occ ≈ 44%4.3★ (27)

    AirbnbVrbo

  • Smoky Mountain Chalet by American Patriot Getaways

    Vacation home · 5 bd · 5 ba · sleeps 12 · 371 ft

    Revenue $103,231ADR $450Occ ≈ 63%—

    Booking

  • 4 Jetted Tubs | Close To Attractions | 5 BD/5.5 BA

    Cabin · 5 bd · 5.5 ba · sleeps 15 · 390 ft

    Revenue $103,959ADR $475Occ ≈ 60%4.8★ (321)

    AirbnbVrboBooking

  • *Stylish 5BD Lodge w/ VIEWS! | Hot Tub + POOL*

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 436 ft

    Revenue $58,526ADR $454Occ ≈ 35%4.2★ (15)

    AirbnbVrbo

  • Families welcome/Hot Tub/Arcade/near town

    Cabin · 5 bd · 5 ba · sleeps 12 · 0.1 mi

    Revenue $105,462ADR $450Occ ≈ 64%4.5★ (67)

    AirbnbVrboBooking

  • Game Room, Arcade, Theater, Hot Tub | Skycrest

    House · 5 bd · 5 ba · sleeps 12 · 0.1 mi

    Revenue $56,686ADR $403Occ ≈ 39%4.9★ (11)

    AirbnbVrboBooking

Show 8 more

  • Cozy 5BD Pool Cabin | Theater + Hot Tub + Location

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 0.1 mi

    Revenue $72,497ADR $489Occ ≈ 41%4.5★ (26)

    AirbnbVrbo

  • Relaxing 5BD POOL Lodge| Theater + Hot Tub + Games

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 0.1 mi

    Revenue $58,125ADR $448Occ ≈ 36%4.5★ (18)

    AirbnbVrbo

  • *NEW* Indoor Pool, Mtn Views, Theater Room, Luxury

    Cabin · 5 bd · 4.5 ba · sleeps 12 · 0.2 mi

    Revenue $180,794ADR $704Occ ≈ 70%5★ (9)

    AirbnbBooking

  • *Gorgeous 5BD Lodge w/ POOL! Hot Tub + Theater*

    Cabin · 5 bd · 5.5 ba · sleeps 12 · 0.2 mi

    Revenue $93,342ADR $501Occ ≈ 51%4.5★ (20)

    AirbnbVrbo

  • Secluded 5BR-5Ba Pigeon Forge Cabin Near Dollywood

    Cabin · 5 bd · 5 ba · sleeps 14 · 0.3 mi

    Revenue $137,583ADR $525Occ ≈ 72%4.9★ (266)

    AirbnbVrbo

  • Smoky Moonshine Manor w Hot Tub!

    Cabin · 5 bd · 5 ba · sleeps 12 · 0.3 mi

    Revenue $28,253ADR $463Occ ≈ 17%4★ (20)

    AirbnbVrboBooking

  • Firepit-Hot tub-Mini Golf-Mini Bowling-EV charger

    Cabin · 5 bd · 5 ba · sleeps 15 · 0.3 mi

    Revenue $42,197ADR $469Occ ≈ 25%5★ (15)

    AirbnbVrbo

  • Changes in Altitude

    Cabin · 5 bd · 5 ba · sleeps 16 · 0.3 mi

    Revenue $85,502ADR $563Occ ≈ 42%4.7★ (84)

    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
Management
Term

Rate 8.15% = 7.40% Freddie Mac 30-yr avg (Oct 15) + 0.75% investor premium

Est. revenue

$94,744

NOI

$54,051

Cash flow /mo

-$1,078

Cash needed

$316,500

Cash-on-cash

-4.1%

ROE (yr 1)

7.3%

Cap rate

5.4%

DSCR

0.81

Year-1 write-off

$181,482

Year-1 tax shield @ 32%

$58,074

Year-1 return on equity

  • Cash flow (annual)-$12,932
  • Principal paydown$6,081
  • Appreciation at%$30,000
ROE7.3%

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)$18,949
  • Platform fees (3% of revenue)$2,842
  • Maintenance / capex (5% of revenue)$4,737
  • Utilities & supplies$4,200
  • HOA$1,200
  • Property tax$2,765
  • Insurance (STR-rated)$6,000

Cash needed to close

  • Down payment (25%)$250,000
  • Closing costs (4.0%)$40,000
  • Furnishing (bought new)$26,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$58,074

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

$918,000

Short-life (5/15-yr)

$154,000 · 17%

Year-1 deduction

$181,000

Year-1 tax shield @ 32%

$58,000

Land 8% (county tax record, market value split) · building $763,000 over 39 years · new furniture $27,000

Based on: 3,936 sq ft, built 2007, 5 bd / 5.5 ba, unfurnished, listing features (hot tub, deck, fireplace, flooring types, appliance list).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $108,000 in year 1 (9% short-life, $34,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$105,800

  • Kitchen cabinetsdefault

    $14,400 new × 40% good × 2.03 allocation

    $11,700

  • Kitchen countertopsdefault

    $11,800 new × 40% good × 2.03 allocation

    $9,600

  • Decorative trimdefault

    $6,900 new × 40% good × 2.03 allocation

    $5,600

  • Mirrorsdefault

    $800 new × 40% good × 2.03 allocation

    $600

  • Shelvingdefault

    $1,800 new × 40% good × 2.03 allocation

    $1,500

  • Window coverings (39)default

    $9,800 new × 40% good × 2.03 allocation

    $7,900

  • Carpet, vinyl & laminate (33% of floors)listing

    $8,400 new × 40% good × 2.03 allocation

    $6,900

  • Kitchen & laundry equipment plumbingdefault

    $11,200 new × 62% good × 2.03 allocation

    $14,100

  • Kitchen, laundry & data equipment electricaldefault

    $6,800 new × 62% good × 2.03 allocation

    $8,600

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

    $6,700 new × 40% good × 2.03 allocation

    $5,400

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 2.03 allocation

    $7,300

  • Furniture bought newlisting

    $26,500 new × 100% good · bought separately

    $26,500
15-year land improvements$74,900

  • Paving: driveway & walks (paved)default

    $13,000 new × 50% good × 2.03 allocation

    $13,200

  • Landscaping (typical)default

    $12,500 new × 50% good × 2.03 allocation

    $12,700

  • Patiosdefault

    $3,900 new × 50% good × 2.03 allocation

    $4,000

  • Decks & porches (attached)listing

    $44,300 new × 50% good × 2.03 allocation

    $45,000
Building, 39-year$763,400

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

    $427,500 new × 68% good × 2.03 allocation

    $593,900

  • Building plumbing & fixturesdefault

    $44,400 new × 62% good × 2.03 allocation

    $56,000

  • Building electrical & lightingdefault

    $47,200 new × 62% good × 2.03 allocation

    $59,400

  • HVACdefault

    $44,300 new × 40% good × 2.03 allocation

    $36,100

  • Hardwood & tile floorsdefault

    $16,900 new × 40% good × 2.03 allocation

    $13,700

  • Fireplaces (2)listing

    $5,300 new × 40% good × 2.03 allocation

    $4,300

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$105,800$74,900$800$181,500
2$0$0$19,600$19,600
3$0$0$19,600$19,600
4$0$0$19,600$19,600
5$0$0$19,600$19,600
6+$0$0$684,300$684,300
Total$105,800$74,900$763,400$944,100

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: 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.