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

2107 Jeans Way

2107 Jeans Way

Sevierville, TN 37876

$619,900

2 bd · 2 ba · 1,342 sqft · Listed 5d ago

View on Realtor.com →
Rental historyNegative cash flow

Year built

1996

Sqft

1,342

Lot sqft

35,284

HOA / mo

None

Furnished

No

List date

2026-09-22T14:03:03Z

Revenue

Annual revenue

$45,656

ADR

$204

Occupancy

61%

Cleaning fees (12 mo)

$7,705

Confidence

Low (41.97), 50 comps

Comp revenue range (p25 / median / p75)

$22,298$43,562$53,376

  • Amberwood by Bear Camp, Private

    2 bd · 2 ba · sleeps 6 · 171 ft

    Revenue —ADR $209Occ ≈ —4.2★ (40)

    AirbnbVrbo

  • "Bear Creek Ridge" 2 Bedroom Cabin

    2 bd · 2 ba · sleeps 6 · 295 ft

    Revenue —ADR $327Occ ≈ ——

    Airbnb

  • *Smoky Jambearee* Luxury Cabin in Smoky Cove Resort.. Game Room, Pool, Hot Tub

    2 bd · 2.5 ba · sleeps 8 · 0.2 mi

    Revenue —ADR $278Occ ≈ —5★ (139)

    Vrbo

  • Elegant & Cozy Cabin Near Pigeon Forge

    2 bd · 2 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $236Occ ≈ —4.8★ (167)

    Vrbo

  • Spacious Cabin! Pool Access - MTN Views!

    2 bd · 2 ba · sleeps 4 · 0.2 mi

    Revenue —ADR $233Occ ≈ —4.7★ (105)

    AirbnbVrbo

  • Relaxation awaits you! Great location, easily accessible!

    2 bd · 3 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $315Occ ≈ —5★ (333)

    Vrbo

  • 2 king suites + 2 sofa beds + pool table

    2 bd · 2.5 ba · sleeps 8 · 0.2 mi

    Revenue —ADR $260Occ ≈ —4.8★ (66)

    AirbnbVrbo

  • Sneaky Bear Getaway, Hot Tub, WIFI, 560 FREE tickets each paid day!!!

    2 bd · 2 ba · sleeps 5 · 0.2 mi

    Revenue —ADR $243Occ ≈ —5★ (1)

    —

  • Sneaky Bear Getaway by Bear Camp

    2 bd · 2 ba · sleeps 5 · 0.2 mi

    Revenue —ADR $248Occ ≈ —4.6★ (19)

    AirbnbVrbo

  • Bear Tracks offers a perfect retreat for families

    2 bd · 2.5 ba · sleeps 8 · 0.2 mi

    Revenue —ADR $257Occ ≈ —4.8★ (5)

    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

$45,656

NOI

$23,174

Cash flow /mo

-$1,409

Cash needed

$201,771

Cash-on-cash

-8.4%

ROE (yr 1)

2.8%

Cap rate

3.7%

DSCR

0.58

Year-1 write-off

$156,505

Year-1 tax shield @ 32%

$50,082

Year-1 return on equity

  • Cash flow (annual)-$16,911
  • Principal paydown$4,057
  • Appreciation at%$18,597
ROE2.8%
ROE incl. year-1 tax savings (32% bracket, STR loophole)27.7%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$9,131
  • Platform fees (3% of revenue)$1,370
  • Maintenance / capex (5% of revenue)$2,283
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$1,779
  • Insurance (STR-rated)$3,719

Cash needed to close

  • Down payment (25%)$154,975
  • Closing costs (4.0%)$24,796
  • Furnishing (bought new)$22,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$50,082

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

$568,000

Short-life (5/15-yr)

$133,000 · 23%

Year-1 deduction

$157,000

Year-1 tax shield @ 32%

$50,000

Land 8% (county tax record, market value split) · building $435,000 over 39 years · new furniture $22,000

Based on: 1,342 sq ft, built 1996, 2 bd / 2 ba, unfurnished, listing features (hot tub, game room, fireplace, flooring types).

IRS-guide safe-harbor floor: $118,000 in year 1 (17% short-life, $38,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$114,900

  • Kitchen cabinetsdefault

    $8,700 new × 40% good × 4.58 allocation

    $16,000

  • Kitchen countertopsdefault

    $7,200 new × 40% good × 4.58 allocation

    $13,100

  • Decorative trimdefault

    $2,300 new × 40% good × 4.58 allocation

    $4,300

  • Mirrorsdefault

    $300 new × 40% good × 4.58 allocation

    $500

  • Shelvingdefault

    $900 new × 40% good × 4.58 allocation

    $1,600

  • Window coverings (13)default

    $3,300 new × 40% good × 4.58 allocation

    $6,000

  • Kitchen & laundry equipment plumbingdefault

    $6,800 new × 40% good × 4.58 allocation

    $12,500

  • Kitchen, laundry & data equipment electricaldefault

    $4,100 new × 40% good × 4.58 allocation

    $7,500

  • Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default

    $8,100 new × 40% good × 4.58 allocation

    $14,800

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 4.58 allocation

    $16,500

  • Furniture bought newlisting

    $16,000 new × 100% good · bought separately

    $16,000

  • Game-room equipment bought newlisting

    $6,000 new × 100% good · bought separately

    $6,000
15-year land improvements$40,200

  • Paving: driveway & walks (paved)default

    $7,600 new × 50% good × 4.58 allocation

    $17,400

  • Landscaping (typical)default

    $7,300 new × 50% good × 4.58 allocation

    $16,700

  • Patiosdefault

    $1,300 new × 50% good × 4.58 allocation

    $3,000

  • Decks & porches (attached)default

    $1,300 new × 50% good × 4.58 allocation

    $3,000
Building, 39-year$435,200

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

    $145,400 new × 50% good × 4.58 allocation

    $333,100

  • Building plumbing & fixturesdefault

    $15,100 new × 40% good × 4.58 allocation

    $27,600

  • Building electrical & lightingdefault

    $14,300 new × 40% good × 4.58 allocation

    $26,200

  • HVACdefault

    $15,100 new × 40% good × 4.58 allocation

    $27,700

  • Hardwood & tile floorsdefault

    $8,600 new × 40% good × 4.58 allocation

    $15,800

  • Fireplacelisting

    $2,600 new × 40% good × 4.58 allocation

    $4,800

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$114,900$40,200$1,400$156,500
2$0$0$11,200$11,200
3$0$0$11,200$11,200
4$0$0$11,200$11,200
5$0$0$11,200$11,200
6+$0$0$389,200$389,200
Total$114,900$40,200$435,200$590,300

The building's share of the price ($568,000) is 4.6x our depreciated replacement cost of the home ($124,000). 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: Georgia disallows 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.