2944 McMahan Sawmill Rd
Sevierville, TN 37862
$489,500
3 bd · 2 ba · 1,152 sqft · Listed 4d ago
View on Realtor.com →Year built
1989
Sqft
1,152
Lot sqft
69,696
HOA / mo
None
Furnished
No
List date
2026-09-23T21:21:02Z
Revenue
Annual revenue
$63,841
ADR
$299
Occupancy
58%
Cleaning fees (12 mo)
$10,636
Confidence
Low (46.94), 49 comps
Comp revenue range (p25 / median / p75)
Perfect Place
3 bd · 3 ba · sleeps 6 · 0.3 mi
Revenue —ADR $354Occ ≈ ——
—
Tranquil Timber
3 bd · 2 ba · sleeps 6 · 0.3 mi
Revenue —ADR $0Occ ≈ ——
—
Black-Beary Cove
3 bd · 2 ba · sleeps 8 · 0.3 mi
Revenue —ADR $282Occ ≈ ——
—
| Listing | Size | Revenue (12 mo) | ADR | Occ ≈ | Rating | Distance | Links |
|---|---|---|---|---|---|---|---|
MTN Retreat/FamilyFriendly/FencedYard/Theater | 3 bd · 3 ba · sleeps 12 | — | $378 | — | 4.9★ (129) | 0.1 mi | AirbnbVrbo |
Smokies luxury private cabin w/ hot tub, gaming | 3 bd · 2 ba · sleeps 8 | — | $232 | — | 4.7★ (59) | 0.2 mi | AirbnbVrbo |
Waldens Creek Retreat (1 mile from Pigeon Forge) | 3 bd · 2 ba · sleeps 8 | — | $220 | — | 5★ (173) | 0.3 mi | AirbnbVrbo |
Indoor Pool @ 83°, Fire Pit, Game Room, Hot Tub | 3 bd · 2.5 ba · sleeps 10 | — | $442 | — | 5★ (133) | 0.3 mi | AirbnbVrbo |
Perfect Place | 3 bd · 3 ba · sleeps 6 | — | $354 | — | — | 0.3 mi | — |
Black-Beary Cove: Starry Nights|Fire-Pit Coziness | 3 bd · 2 ba · sleeps 8 | — | $312 | — | 4.9★ (42) | 0.3 mi | AirbnbVrbo |
Amazing 3 bedroom tucked in wooded park like | 3 bd · 3 ba · sleeps 6 | — | $207 | — | 4.4★ (37) | 0.3 mi | AirbnbVrbo |
Tranquil Timber | 3 bd · 2 ba · sleeps 6 | — | $0 | — | — | 0.3 mi | — |
Emerald Woods Hangout | Pet Friendly, Fire Pit | 3 bd · 2 ba · sleeps 6 | — | $427 | — | — | 0.3 mi | AirbnbVrbo |
Black-Beary Cove | 3 bd · 2 ba · sleeps 8 | — | $282 | — | — | 0.3 mi | — |
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
Rate 7.78% = 7.03% Freddie Mac 30-yr avg (Sep 24) + 0.75% investor premium
Est. revenue
$63,841
NOI
$38,036
Cash flow /mo
$532
Cash needed
$161,455
Cash-on-cash
4.0%
ROE (yr 1)
15.0%
Cap rate
7.8%
DSCR
1.20
Year-1 write-off
$139,193
Year-1 tax shield @ 32%
$44,542
Year-1 return on equity
- Cash flow (annual)$6,383
- Principal paydown$3,203
- Appreciation at%$14,685
Opex, cash-needed & tax-savings breakdown
Annual operating expenses
- Management (20% of revenue)$12,768
- Platform fees (3% of revenue)$1,915
- Maintenance / capex (5% of revenue)$3,192
- Utilities & supplies$4,200
- HOA$0
- Property tax$793
- Insurance (STR-rated)$2,937
Cash needed to close
- Down payment (25%)$122,375
- Closing costs (4.0%)$19,580
- Furnishing (bought new)$19,500
Tax savings if the STR loophole applies
- Tax shield @ 32%$44,542
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
$370,000
Short-life (5/15-yr)
$119,000 · 32%
Year-1 deduction
$139,000
Year-1 tax shield @ 32%
$45,000
Land 24% (county tax record, market value split) · building $251,000 over 39 years · new furniture $20,000
Based on: 1,152 sq ft, built 1989, 3 bd / 2 ba, unfurnished, listing features (deck, fireplace, wooded lot).
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.
- $12,400
Kitchen cabinetsdefault
$8,300 new × 40% good × 3.71 allocation
- $10,100
Kitchen countertopsdefault
$6,800 new × 40% good × 3.71 allocation
- $3,000
Decorative trimdefault
$2,000 new × 40% good × 3.71 allocation
- $400
Mirrorsdefault
$300 new × 40% good × 3.71 allocation
- $1,800
Shelvingdefault
$1,200 new × 40% good × 3.71 allocation
- $4,500
Window coverings (12)default
$3,000 new × 40% good × 3.71 allocation
- $4,400
Carpet, vinyl & laminate (40% of floors)default
$3,000 new × 40% good × 3.71 allocation
- $9,600
Kitchen & laundry equipment plumbingdefault
$6,500 new × 40% good × 3.71 allocation
- $5,800
Kitchen, laundry & data equipment electricaldefault
$3,900 new × 40% good × 3.71 allocation
- $12,000
Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default
$8,100 new × 40% good × 3.71 allocation
- $19,500
Furniture bought newlisting
$19,500 new × 100% good · bought separately
- $13,100
Paving: driveway & walks (paved)default
$7,000 new × 50% good × 3.71 allocation
- $6,300
Landscaping (minimal)listing
$3,400 new × 50% good × 3.71 allocation
- $2,100
Patiosdefault
$1,100 new × 50% good × 3.71 allocation
- $24,100
Decks & porches (attached)listing
$13,000 new × 50% good × 3.71 allocation
- $9,300
Gazebo / pergolalisting
$5,000 new × 50% good × 3.71 allocation
- $184,800
Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$124,400 new × 40% good × 3.71 allocation
- $19,200
Building plumbing & fixturesdefault
$12,900 new × 40% good × 3.71 allocation
- $17,600
Building electrical & lightingdefault
$11,900 new × 40% good × 3.71 allocation
- $19,300
HVACdefault
$13,000 new × 40% good × 3.71 allocation
- $6,600
Hardwood & tile floorsdefault
$4,400 new × 40% good × 3.71 allocation
- $3,900
Fireplacelisting
$2,600 new × 40% good × 3.71 allocation
About the property
Depreciation schedule: typical cost seg study
| Year | 5-yr | 15-yr | Building | Total |
|---|---|---|---|---|
| 1 | $83,600 | $54,800 | $800 | $139,200 |
| 2 | $0 | $0 | $6,400 | $6,400 |
| 3 | $0 | $0 | $6,400 | $6,400 |
| 4 | $0 | $0 | $6,400 | $6,400 |
| 5 | $0 | $0 | $6,400 | $6,400 |
| 6+ | $0 | $0 | $224,800 | $224,800 |
| Total | $83,600 | $54,800 | $251,400 | $389,800 |
The building's share of the price ($370,000) is 3.7x our depreciated replacement cost of the home ($100,000). 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.