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

544 Kings Hills Blvd

544 Kings Hills Blvd

Pigeon Forge, TN 37863

$1,100,000

7 bd · 3.5 ba · 5,228 sqft · Listed 1d ago

View on Realtor.com →
Low confidenceNegative cash flow

Year built

2006

Sqft

5,228

Lot sqft

28,750

HOA / mo

None

Furnished

No

List date

2026-09-28T16:31:34.000000Z

Revenue

Annual revenue

$75,569

ADR

$427

Occupancy

48%

Cleaning fees (12 mo)

$12,156

Confidence

Low (51.77), 7 comps

Comp revenue range (p25 / median / p75)

$50,234$67,979$97,305

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  • Robertson's Pigeon Forge Vacation Home

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    Cabin · 6 bd · 4.5 ba · sleeps 16 · 0.5 mi

    Revenue $66,588ADR $560Occ ≈ 33%5★ (55)

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  • Escape to "High Valley Hideaway" in Pigeon Forge with 5 bedrooms, a hot tub, and game room fun!

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    Revenue $33,879ADR $285Occ ≈ 33%4★ (1)

    Booking

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

$75,569

NOI

$41,547

Cash flow /mo

-$2,465

Cash needed

$358,500

Cash-on-cash

-8.3%

ROE (yr 1)

3.0%

Cap rate

3.8%

DSCR

0.58

Year-1 write-off

$252,960

Year-1 tax shield @ 32%

$80,947

Year-1 return on equity

  • Cash flow (annual)-$29,583
  • Principal paydown$7,198
  • Appreciation at%$33,000
ROE3.0%
ROE incl. year-1 tax savings (32% bracket, STR loophole)25.5%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$15,114
  • Platform fees (3% of revenue)$2,267
  • Maintenance / capex (5% of revenue)$3,778
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$2,063
  • Insurance (STR-rated)$6,600

Cash needed to close

  • Down payment (25%)$275,000
  • Closing costs (4.0%)$44,000
  • Furnishing (bought new)$39,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$80,947

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

$990,000

Short-life (5/15-yr)

$211,000 · 21%

Year-1 deduction

$253,000

Year-1 tax shield @ 32%

$81,000

Land 10% (county tax record, market value split) · building $779,000 over 39 years · new furniture $40,000

Based on: 5,228 sq ft, built 2006, 7 bd / 3.5 ba, unfurnished, listing features (pool, deck, patio, game room, fireplace, stone counters, flooring types, appliance list).

IRS-guide safe-harbor floor: $176,000 in year 1 (14% short-life, $56,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$109,100

  • Kitchen cabinetsdefault

    $17,300 new × 40% good × 1.60 allocation

    $11,000

  • Kitchen countertops (stone)listing

    $17,700 new × 40% good × 1.60 allocation

    $11,300

  • Decorative trimdefault

    $9,100 new × 40% good × 1.60 allocation

    $5,900

  • Mirrorsdefault

    $500 new × 40% good × 1.60 allocation

    $300

  • Shelvingdefault

    $2,400 new × 40% good × 1.60 allocation

    $1,500

  • Window coverings (52)default

    $13,000 new × 40% good × 1.60 allocation

    $8,300

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

    $8,400 new × 40% good × 1.60 allocation

    $5,400

  • Kitchen & laundry equipment plumbingdefault

    $13,400 new × 60% good × 1.60 allocation

    $12,900

  • Kitchen, laundry & data equipment electricaldefault

    $8,100 new × 60% good × 1.60 allocation

    $7,800

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

    $8,100 new × 40% good × 1.60 allocation

    $5,200

  • Furniture bought newlisting

    $33,500 new × 100% good · bought separately

    $33,500

  • Game-room equipment bought newlisting

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

    $6,000
15-year land improvements$141,400

  • Paving: driveway & walks (paved)default

    $15,000 new × 50% good × 1.60 allocation

    $12,000

  • Landscaping (typical)default

    $14,400 new × 50% good × 1.60 allocation

    $11,500

  • Patioslisting

    $23,500 new × 50% good × 1.60 allocation

    $18,800

  • Decks & porches (attached)listing

    $58,800 new × 50% good × 1.60 allocation

    $47,000

  • Pool (in-ground)listing

    $65,000 new × 50% good × 1.60 allocation

    $52,000
Building, 39-year$779,400

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

    $568,400 new × 67% good × 1.60 allocation

    $606,200

  • Building plumbing & fixturesdefault

    $59,000 new × 60% good × 1.60 allocation

    $56,700

  • Building electrical & lightingdefault

    $63,500 new × 60% good × 1.60 allocation

    $61,000

  • HVACdefault

    $58,900 new × 40% good × 1.60 allocation

    $37,700

  • Hardwood & tile floorsdefault

    $25,200 new × 40% good × 1.60 allocation

    $16,100

  • Fireplacelisting

    $2,600 new × 40% good × 1.60 allocation

    $1,700

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$109,100$141,400$2,500$253,000
2$0$0$20,000$20,000
3$0$0$20,000$20,000
4$0$0$20,000$20,000
5$0$0$20,000$20,000
6+$0$0$696,900$696,900
Total$109,100$141,400$779,400$1,029,800

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: 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.