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

1815 Trout Way

1815 Trout Way

Sevierville, TN 37862

$529,000

2 bd · 2 ba · 1,008 sqft · Listed 5d ago

View on Realtor.com →
Rental historyNegative cash flow

Year built

2001

Sqft

1,008

Lot sqft

7,405

HOA / mo

None

Furnished

No

List date

2026-09-22T17:10:39Z

Revenue

Annual revenue

$47,341

ADR

$207

Occupancy

63%

Cleaning fees (12 mo)

$10,941

Confidence

Med (67.44), 26 comps

Comp revenue range (p25 / median / p75)

$40,824$49,434$56,929

  • Pet Friendly Cabin w/ View! Hot Tub & Playground!

    2 bd · 2 ba · sleeps 6 · 13 ft

    Revenue —ADR $187Occ ≈ —4.9★ (62)

    AirbnbVrbo

  • Hot Tub! Near Dollywood |2BD/2BA| Sleeps6 BBQ!

    2 bd · 2 ba · sleeps 6 · 30 ft

    Revenue —ADR $214Occ ≈ —5★ (190)

    AirbnbVrbo

  • Free Dollywood Tix/HotTub/Dog Friendly/A+ Location

    2 bd · 2 ba · sleeps 6 · 52 ft

    Revenue —ADR $216Occ ≈ —4.9★ (42)

    AirbnbVrbo

  • 5min Dollywood~Easy Road~FirePit~Arcade~Playground

    2 bd · 2 ba · sleeps 8 · 89 ft

    Revenue —ADR $233Occ ≈ —5★ (342)

    AirbnbVrbo

  • Minutes to Dollywood & The Island~Hot tub~Firepit

    2 bd · 2 ba · sleeps 6 · 95 ft

    Revenue —ADR $213Occ ≈ —5★ (248)

    AirbnbVrbo

  • BearlyTrout'n: View* Honeymoon*HotTub*Wifi*Creek*

    2 bd · 2 ba · sleeps 8 · 118 ft

    Revenue —ADR $236Occ ≈ ——

    AirbnbVrbo

  • Momma Bear by American Patriot Getaways

    2 bd · 2 ba · sleeps 4 · 171 ft

    Revenue —ADR $275Occ ≈ ——

    —

  • Bear Necessities – Hot Tub, Game Loft & Smokies

    2 bd · 2 ba · sleeps 9 · 184 ft

    Revenue —ADR $253Occ ≈ —4.8★ (62)

    AirbnbVrbo

  • Bear Country: Your Cozy Smoky Mountain Den

    2 bd · 2 ba · sleeps 7 · 233 ft

    Revenue —ADR $258Occ ≈ —4.8★ (5)

    AirbnbVrbo

  • Deer Run, Free Tickets, Hot Tub, WIFI

    2 bd · 2 ba · sleeps 9 · 259 ft

    Revenue —ADR $257Occ ≈ —4.7★ (26)

    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

$47,341

NOI

$25,002

Cash flow /mo

-$767

Cash needed

$175,410

Cash-on-cash

-5.2%

ROE (yr 1)

5.8%

Cap rate

4.7%

DSCR

0.73

Year-1 write-off

$115,123

Year-1 tax shield @ 32%

$36,840

Year-1 return on equity

  • Cash flow (annual)-$9,206
  • Principal paydown$3,462
  • Appreciation at%$15,870
ROE5.8%
ROE incl. year-1 tax savings (32% bracket, STR loophole)26.8%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$9,468
  • Platform fees (3% of revenue)$1,420
  • Maintenance / capex (5% of revenue)$2,367
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$1,710
  • Insurance (STR-rated)$3,174

Cash needed to close

  • Down payment (25%)$132,250
  • Closing costs (4.0%)$21,160
  • Furnishing (bought new)$22,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$36,840

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

$364,000

Short-life (5/15-yr)

$92,000 · 25%

Year-1 deduction

$115,000

Year-1 tax shield @ 32%

$37,000

Land 31% (county tax record, market value split) · building $272,000 over 39 years · new furniture $22,000

Based on: 1,008 sq ft, built 2001, 2 bd / 2 ba, unfurnished, listing features (hot tub, game room, fireplace, stone counters, flooring types).

IRS-guide safe-harbor floor: $88,000 in year 1 (18% short-life, $28,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$89,700

  • Kitchen cabinetsdefault

    $8,000 new × 40% good × 3.30 allocation

    $10,600

  • Kitchen countertops (stone)listing

    $8,200 new × 40% good × 3.30 allocation

    $10,800

  • Decorative trimdefault

    $1,800 new × 40% good × 3.30 allocation

    $2,300

  • Mirrorsdefault

    $300 new × 40% good × 3.30 allocation

    $400

  • Shelvingdefault

    $900 new × 40% good × 3.30 allocation

    $1,200

  • Window coverings (10)default

    $2,500 new × 40% good × 3.30 allocation

    $3,300

  • Kitchen & laundry equipment plumbingdefault

    $6,200 new × 50% good × 3.30 allocation

    $10,300

  • Kitchen, laundry & data equipment electricaldefault

    $3,800 new × 50% good × 3.30 allocation

    $6,200

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

    $8,100 new × 40% good × 3.30 allocation

    $10,700

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 3.30 allocation

    $11,900

  • 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$24,600

  • Paving: driveway & walks (paved)default

    $6,600 new × 50% good × 3.30 allocation

    $10,900

  • Landscaping (typical)default

    $6,300 new × 50% good × 3.30 allocation

    $10,400

  • Patiosdefault

    $1,000 new × 50% good × 3.30 allocation

    $1,600

  • Decks & porches (attached)default

    $1,000 new × 50% good × 3.30 allocation

    $1,600
Building, 39-year$271,900

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

    $108,900 new × 58% good × 3.30 allocation

    $209,700

  • Building plumbing & fixturesdefault

    $11,300 new × 50% good × 3.30 allocation

    $18,600

  • Building electrical & lightingdefault

    $10,000 new × 50% good × 3.30 allocation

    $16,600

  • HVACdefault

    $11,400 new × 40% good × 3.30 allocation

    $15,000

  • Hardwood & tile floorsdefault

    $6,500 new × 40% good × 3.30 allocation

    $8,600

  • Fireplacelisting

    $2,600 new × 40% good × 3.30 allocation

    $3,500

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$89,700$24,600$900$115,100
2$0$0$7,000$7,000
3$0$0$7,000$7,000
4$0$0$7,000$7,000
5$0$0$7,000$7,000
6+$0$0$243,100$243,100
Total$89,700$24,600$271,900$386,100

The building's share of the price ($364,000) is 3.3x our depreciated replacement cost of the home ($110,000). 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.