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

124 Plaza Dr Unit 5406

Pigeon Forge, TN 37863

$419,000

2 bd · 2 ba · 1,036 sqft · Listed 2d ago

View on Realtor.com →

Rental historyNegative cash flow

Year built

2008

Sqft

1,036

Lot sqft

—

HOA / mo

$300

Furnished

Yes

List date

2026-09-25T06:12:43Z

Revenue

Annual revenue

$35,137

ADR

$176

Occupancy

55%

Cleaning fees (12 mo)

$6,012

Confidence

Low (47.82), 50 comps

Comp revenue range (p25 / median / p75)

$22,381$30,552$39,546

Lois' Luxury Lodge w/ Hot tub, Pools, Mountain Views, Fireplace, and Balcony
2 bd · 2 ba · sleeps 6 · 33 ft
Revenue —ADR $174Occ ≈ —4.9★ (180)
Vrbo
BEAUTIFUL NEWLY REMODELED COZY AND COMFORTABLE UNIT
2 bd · 2 ba · sleeps 6 · 92 ft
Revenue —ADR $199Occ ≈ —5★ (181)
Vrbo
Beautiful Luxury 2bd/2ba Condo in a Great Location with Mt. Views!
2 bd · 2 ba · sleeps 6 · 92 ft
Revenue —ADR $176Occ ≈ —4.9★ (180)
Vrbo
Two bedroom, two bathroom condo in the heart of Pigeon Forge
2 bd · 2 ba · sleeps 6 · 95 ft
Revenue —ADR $213Occ ≈ ——
Vrbo
Two bedroom condo at Mt View Resort in PF|Sleeps 6
2 bd · 2 ba · sleeps 6 · 102 ft
Revenue —ADR $172Occ ≈ ——
Airbnb
Condo w/Balcony, Views, Indoor/outdoor Pools
2 bd · 2 ba · sleeps 6 · 125 ft
Revenue —ADR $220Occ ≈ —4.7★ (89)
Airbnb Vrbo
Mountain View
2 bd · 2 ba · sleeps 6 · 135 ft
Revenue —ADR $223Occ ≈ —3★ (3)
Airbnb Vrbo
Family Condo w/ Indoor Pool + Views | Sleeps 9
2 bd · 2 ba · sleeps 9 · 148 ft
Revenue —ADR $261Occ ≈ —5★ (49)
Airbnb Vrbo
Close to Heaven - Hot tub and pool table!
2 bd · 2 ba · sleeps 6 · 154 ft
Revenue —ADR $228Occ ≈ —4★ (15)
Airbnb Vrbo
The Cove - Unit 1302 - Mountain View Condos
2 bd · 2 ba · sleeps 6 · 174 ft
Revenue —ADR $158Occ ≈ —4.6★ (159)
Airbnb Vrbo

Listing	Size	Revenue (12 mo)	ADR	Occ ≈	Rating	Distance	Links
Lois' Luxury Lodge w/ Hot tub, Pools, Mountain Views, Fireplace, and Balcony	2 bd · 2 ba · sleeps 6	—	$174	—	4.9★ (180)	33 ft	Vrbo
BEAUTIFUL NEWLY REMODELED COZY AND COMFORTABLE UNIT	2 bd · 2 ba · sleeps 6	—	$199	—	5★ (181)	92 ft	Vrbo
Beautiful Luxury 2bd/2ba Condo in a Great Location with Mt. Views!	2 bd · 2 ba · sleeps 6	—	$176	—	4.9★ (180)	92 ft	Vrbo
Two bedroom, two bathroom condo in the heart of Pigeon Forge	2 bd · 2 ba · sleeps 6	—	$213	—	—	95 ft	Vrbo
Two bedroom condo at Mt View Resort in PF\|Sleeps 6	2 bd · 2 ba · sleeps 6	—	$172	—	—	102 ft	Airbnb
Condo w/Balcony, Views, Indoor/outdoor Pools	2 bd · 2 ba · sleeps 6	—	$220	—	4.7★ (89)	125 ft	Airbnb Vrbo
Mountain View	2 bd · 2 ba · sleeps 6	—	$223	—	3★ (3)	135 ft	Airbnb Vrbo
Family Condo w/ Indoor Pool + Views \| Sleeps 9	2 bd · 2 ba · sleeps 9	—	$261	—	5★ (49)	148 ft	Airbnb Vrbo
Close to Heaven - Hot tub and pool table!	2 bd · 2 ba · sleeps 6	—	$228	—	4★ (15)	154 ft	Airbnb Vrbo
The Cove - Unit 1302 - Mountain View Condos	2 bd · 2 ba · sleeps 6	—	$158	—	4.6★ (159)	174 ft	Airbnb Vrbo

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

Purchase priceDown payment %30-yr rate %Already furnishedTax bracket

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

Est. revenue

$35,137

NOI

$13,602

Cash flow /mo

-$1,124

Cash needed

$121,510

Cash-on-cash

-11.1%

ROE (yr 1)

1.5%

Cap rate

3.2%

DSCR

0.50

Year-1 write-off

$65,270

Year-1 tax shield @ 32%

$20,886

Year-1 return on equity

Cash flow (annual)-$13,492
Principal paydown$2,742
Appreciation at%$12,570

ROE1.5%

ROE incl. year-1 tax savings (32% bracket, STR loophole)18.7%

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

Management (20% of revenue)$7,027
Platform fees (3% of revenue)$1,054
Maintenance / capex (5% of revenue)$1,757
Utilities & supplies$4,200
HOA$3,600
Property tax$1,383
Insurance (STR-rated)$2,514

Cash needed to close

Down payment (25%)$104,750
Closing costs (4.0%)$16,760
Furnishing (conveyed with the sale)$0

Tax savings if the STR loophole applies

Tax shield @ 32%$20,886

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

$321,000

Short-life (5/15-yr)

$64,000 · 20%

Year-1 deduction

$65,000

Year-1 tax shield @ 32%

$21,000

Land 24% (county tax record, market value split) · building $256,000 over 39 years

Based on: 1,036 sq ft, built 2008, 2 bd / 2 ba, furnished, listing features (hot tub, pool, deck, patio, fireplace, flooring types, appliance list, wooded lot).

IRS-guide safe-harbor floor: $47,000 in year 1 (14% short-life, $15,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$64,400

Kitchen cabinetsdefault
$8,100 new × 40% good × 2.58 allocation
$8,300
Kitchen countertopsdefault
$6,600 new × 40% good × 2.58 allocation
$6,800
Decorative trimdefault
$1,800 new × 40% good × 2.58 allocation
$1,900
Mirrorsdefault
$300 new × 40% good × 2.58 allocation
$300
Shelvingdefault
$900 new × 40% good × 2.58 allocation
$900
Window coverings (10)default
$2,500 new × 40% good × 2.58 allocation
$2,600
Carpet, vinyl & laminate (50% of floors)listing
$3,300 new × 40% good × 2.58 allocation
$3,400
Kitchen & laundry equipment plumbingdefault
$6,300 new × 64% good × 2.58 allocation
$10,400
Kitchen, laundry & data equipment electricaldefault
$3,800 new × 64% good × 2.58 allocation
$6,300
Appliances (range, microwave, dishwasher, refrigerator, washer, dryer)listing
$7,700 new × 40% good × 2.58 allocation
$7,900
Hot tub (freestanding)listing
$9,000 new × 40% good × 2.58 allocation
$9,300
Furniture conveyed with the sale (used)listing
$16,000 new × 40% good · out of the price
$6,400

Building, 39-year$256,400

Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$112,000 new × 70% good × 2.58 allocation
$201,900
Building plumbing & fixturesdefault
$11,600 new × 64% good × 2.58 allocation
$19,100
Building electrical & lightingdefault
$10,400 new × 64% good × 2.58 allocation
$17,200
HVACdefault
$11,700 new × 40% good × 2.58 allocation
$12,000
Hardwood & tile floorsdefault
$3,300 new × 40% good × 2.58 allocation
$3,400
Fireplacelisting
$2,600 new × 40% good × 2.58 allocation
$2,700

About the property

Sold furnishedGame roomHot tubPoolDeckDrivewayLandscapingFencedIrrigationLong-term rental (27.5-yr)Carpet / vinyl / laminate %Placed in serviceClosing costs $ (adds to basis)Land %Bonus depreciation %

Depreciation schedule: typical cost seg study

Year	5-yr	15-yr	Building	Total
1	$64,400	$0	$800	$65,300
2	$0	$0	$6,600	$6,600
3	$0	$0	$6,600	$6,600
4	$0	$0	$6,600	$6,600
5	$0	$0	$6,600	$6,600
6+	$0	$0	$229,200	$229,200
Total	$64,400	$0	$256,400	$320,800

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.