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

4659 Wesley Way

4659 Wesley Way

Sevierville, TN 37876

$950,000

3 bd · 3 ba · 3,056 sqft · Listed 1d ago

View on Realtor.com →
Low confidenceNegative cash flow

Year built

2008

Sqft

3,056

Lot sqft

218,671

HOA / mo

$8

Furnished

No

List date

2026-09-28T20:31:54.000000Z

Revenue

Annual revenue

$58,063

ADR

$288

Occupancy

55%

Cleaning fees (12 mo)

$5,094

Confidence

Low (23.36), 7 comps

Comp revenue range (p25 / median / p75)

$21,521$26,093$59,337

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  • I Do Love Views*Home Theater*Wet Bar*Views*Hot Tub

    Cabin · 4 bd · 3 ba · sleeps 8 · 197 ft

    Revenue $65,090ADR $335Occ ≈ 53%5★ (1)

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  • Away From It All | Theater Room + Arcade + Hot Tub

    Cabin · 2 bd · 2 ba · sleeps 6 · 0.5 mi

    Revenue $53,584ADR $221Occ ≈ 66%4.8★ (96)

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  • PrivateTwo Bedroom Log Cabin near Pigeon Forge

    Cabin · 2 bd · 2 ba · sleeps 6 · 0.5 mi

    Revenue $23,449ADR $171Occ ≈ 38%4.7★ (64)

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  • Bear Pause

    Cabin · 2 bd · 2 ba · sleeps 6 · 0.5 mi

    Revenue $19,592ADR $227Occ ≈ 24%4.5★ (22)

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  • Bear Pause

    Chalet · 2 bd · 2 ba · sleeps 6 · 0.5 mi

    Revenue $26,093ADR $179Occ ≈ 40%5★ (1)

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  • Freedom Cabin Immerse in Nature

    Cabin · 2 bd · 2 ba · sleeps 6 · 0.6 mi

    Revenue $440ADR $146Occ ≈ 1%—

    Airbnb

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

$58,063

NOI

$30,301

Cash flow /mo

-$2,594

Cash needed

$301,000

Cash-on-cash

-10.3%

ROE (yr 1)

1.2%

Cap rate

3.2%

DSCR

0.49

Year-1 write-off

$169,849

Year-1 tax shield @ 32%

$54,352

Year-1 return on equity

  • Cash flow (annual)-$31,129
  • Principal paydown$6,217
  • Appreciation at%$28,500
ROE1.2%
ROE incl. year-1 tax savings (32% bracket, STR loophole)19.2%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$11,613
  • Platform fees (3% of revenue)$1,742
  • Maintenance / capex (5% of revenue)$2,903
  • Utilities & supplies$4,200
  • HOA$96
  • Property tax$1,508
  • Insurance (STR-rated)$5,700

Cash needed to close

  • Down payment (25%)$237,500
  • Closing costs (4.0%)$38,000
  • Furnishing (bought new)$25,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$54,352

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

$823,000

Short-life (5/15-yr)

$142,000 · 17%

Year-1 deduction

$170,000

Year-1 tax shield @ 32%

$54,000

Land 13% (county tax record, market value split) · building $681,000 over 39 years · new furniture $26,000

Based on: 3,056 sq ft, built 2008, 3 bd / 3 ba, unfurnished, listing features (hot tub, deck, game room, fireplace, flooring types, appliance list, septic).

IRS-guide safe-harbor floor: $105,000 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$100,700

  • Kitchen cabinetsdefault

    $12,500 new × 40% good × 2.24 allocation

    $11,200

  • Kitchen countertopsdefault

    $10,200 new × 40% good × 2.24 allocation

    $9,100

  • Decorative trimdefault

    $5,300 new × 40% good × 2.24 allocation

    $4,800

  • Mirrorsdefault

    $500 new × 40% good × 2.24 allocation

    $400

  • Shelvingdefault

    $1,200 new × 40% good × 2.24 allocation

    $1,100

  • Window coverings (31)default

    $7,800 new × 40% good × 2.24 allocation

    $6,900

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

    $4,900 new × 40% good × 2.24 allocation

    $4,400

  • Kitchen & laundry equipment plumbingdefault

    $9,700 new × 64% good × 2.24 allocation

    $13,900

  • Kitchen, laundry & data equipment electricaldefault

    $5,900 new × 64% good × 2.24 allocation

    $8,400

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

    $7,700 new × 40% good × 2.24 allocation

    $6,900

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 2.24 allocation

    $8,100

  • Furniture bought newlisting

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

    $19,500

  • Game-room equipment bought newlisting

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

    $6,000
15-year land improvements$67,000

  • Paving: driveway & walks (paved)default

    $11,500 new × 50% good × 2.24 allocation

    $12,800

  • Landscaping (typical)default

    $11,000 new × 50% good × 2.24 allocation

    $12,300

  • Patiosdefault

    $3,000 new × 50% good × 2.24 allocation

    $3,400

  • Decks & porches (attached)listing

    $34,400 new × 50% good × 2.24 allocation

    $38,400
Building, 39-year$680,800

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

    $332,300 new × 70% good × 2.24 allocation

    $520,200

  • Building plumbing & fixturesdefault

    $34,500 new × 64% good × 2.24 allocation

    $49,300

  • Building electrical & lightingdefault

    $36,000 new × 64% good × 2.24 allocation

    $51,500

  • HVACdefault

    $34,400 new × 40% good × 2.24 allocation

    $30,800

  • Hardwood & tile floorsdefault

    $14,700 new × 40% good × 2.24 allocation

    $13,200

  • Fireplacelisting

    $2,600 new × 40% good × 2.24 allocation

    $2,400

  • Septic systemlisting

    $12,000 new × 50% good × 2.24 allocation

    $13,400

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$100,700$67,000$2,200$169,800
2$0$0$17,500$17,500
3$0$0$17,500$17,500
4$0$0$17,500$17,500
5$0$0$17,500$17,500
6+$0$0$608,800$608,800
Total$100,700$67,000$680,800$848,500

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 and Georgia 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.