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Rate 7.93% = 7.18% Freddie Mac 30-yr avg (Nov 5) + 0.75% investor premium

1115 Rocky Top Ridge Way

1115 Rocky Top Ridge Way

Sevierville, TN 37876

$479,000

2 bd · 2 ba · 1,092 sqft · Listed 1d ago

View on Realtor.com →
Negative cash flow

Year built

2004

Sqft

1,092

Lot sqft

35,719

HOA / mo

$0

Furnished

No

List date

2026-11-11T13:32:08.000000Z

Revenue

Annual revenue

$40,772

ADR

$211

Occupancy

53%

Cleaning fees (12 mo)

$11,103

Confidence

Med (69.89), 9 comps

Comp revenue range (p25 / median / p75)

$38,172$42,299$53,535

Few similar-size comps were found, so all comps are shown.

Median revenue of shown comps: $42,299

  • Hot Tub Cabin · Fire Pit & Game Loft

    House · 2 bd · 2 ba · sleeps 6 · 72 ft

    Revenue $30,823ADR $208Occ ≈ 41%4.8★ (22)

    AirbnbVrbo

  • Mosey Bear, $560 FREE tickets each paid day

    Cabin · 1 bd · 1 ba · sleeps 2 · 322 ft

    Revenue $38,172ADR $195Occ ≈ 54%4.4★ (19)

    AirbnbVrboBooking

  • Cozy Bear by Bear Camp Secluded

    Cabin · 1 bd · 1 ba · sleeps 2 · 433 ft

    Revenue $42,299ADR $204Occ ≈ 57%4.2★ (21)

    AirbnbVrboBooking

  • Smoky Mountains Log Cabin w/ Cozy Hot Tub

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.1 mi

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +3

    Revenue $36,526ADR $205Occ ≈ 49%4.8★ (126)

    AirbnbVrbo

  • Private Cabin & A View! Hot Tub, King Bed, Private

    Cabin · 1 bd · 1 ba · sleeps 4 · 0.2 mi

    Revenue $46,349ADR $195Occ ≈ 65%4.8★ (271)

    AirbnbVrbo

  • NEW Lux Sauna, Dome, Stargazing Net, Putting Green

    Tiny house · 1 bd · 1 ba · sleeps 4 · 0.2 mi

    Revenue $76,584ADR $230Occ ≈ 91%4.8★ (167)

    AirbnbVrbo

  • 3BR Farmhouse for 7, Near Pigeon Forge & Dollywood

    House · 3 bd · 2 ba · sleeps 7 · 0.2 mi

    • A/C
    • Free parking
    • Pets OK
    • Wifi
    • +3

    Revenue $39,299ADR $227Occ ≈ 47%4.2★ (22)

    AirbnbVrboBooking

  • Great location! 2BR w/Hot Tub + Firepit + Grill

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

    Revenue $53,535ADR $181Occ ≈ 81%4.9★ (150)

    AirbnbVrbo

  • Flat fenced yard, playground, Firepit, Hottub,WIFI

    Cabin · 2 bd · 1 ba · sleeps 8 · 0.7 mi

    Revenue $59,376ADR $232Occ ≈ 70%4.6★ (221)

    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
Management
Term

Rate 7.93% = 7.18% Freddie Mac 30-yr avg (Nov 5) + 0.75% investor premium

Est. revenue

$40,772

NOI

$21,406

Cash flow /mo

-$835

Cash needed

$154,910

Cash-on-cash

-6.5%

ROE (yr 1)

4.8%

Cap rate

4.5%

DSCR

0.68

Year-1 write-off

$123,795

Year-1 tax shield @ 32%

$39,614

Year-1 return on equity

  • Cash flow (annual)-$10,017
  • Principal paydown$3,043
  • Appreciation at%$14,370
ROE4.8%

Tax savings aren't counted. Turn on “Count tax savings in returns” above if you can use the losses.

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$8,154
  • Platform fees (3% of revenue)$1,223
  • Maintenance / capex (5% of revenue)$2,039
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$876
  • Insurance (STR-rated)$2,874

Cash needed to close

  • Down payment (25%)$119,750
  • Closing costs (4.0%)$19,160
  • Furnishing (bought new)$16,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$39,614

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

$439,000

Short-life (5/15-yr)

$107,000 · 24%

Year-1 deduction

$124,000

Year-1 tax shield @ 32%

$40,000

Land 8% (county tax record, market value split) · building $331,000 over 39 years · new furniture $16,000

Based on: 1,092 sq ft, built 2004, 2 bd / 2 ba, unfurnished, listing features (hot tub, deck, fireplace, flooring types, appliance list, septic).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $81,000 in year 1 (15% short-life, $26,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$80,200

  • Kitchen cabinetsdefault

    $8,200 new × 40% good × 3.23 allocation

    $10,600

  • Kitchen countertopsdefault

    $6,700 new × 40% good × 3.23 allocation

    $8,600

  • Decorative trimdefault

    $1,900 new × 40% good × 3.23 allocation

    $2,500

  • Mirrorsdefault

    $300 new × 40% good × 3.23 allocation

    $400

  • Shelvingdefault

    $900 new × 40% good × 3.23 allocation

    $1,200

  • Window coverings (11)default

    $2,800 new × 40% good × 3.23 allocation

    $3,500

  • Kitchen & laundry equipment plumbingdefault

    $6,400 new × 56% good × 3.23 allocation

    $11,500

  • Kitchen, laundry & data equipment electricaldefault

    $3,900 new × 56% good × 3.23 allocation

    $7,000

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

    $5,700 new × 40% good × 3.23 allocation

    $7,400

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 3.23 allocation

    $11,600

  • Furniture bought newlisting

    $16,000 new × 100% good · bought separately

    $16,000
15-year land improvements$43,200

  • Paving: driveway & walks (paved)default

    $6,900 new × 50% good × 3.23 allocation

    $11,000

  • Landscaping (typical)default

    $6,600 new × 50% good × 3.23 allocation

    $10,600

  • Patiosdefault

    $1,100 new × 50% good × 3.23 allocation

    $1,700

  • Decks & porches (attached)listing

    $12,300 new × 50% good × 3.23 allocation

    $19,800
Building, 39-year$331,100

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

    $118,100 new × 63% good × 3.23 allocation

    $241,300

  • Building plumbing & fixturesdefault

    $12,200 new × 56% good × 3.23 allocation

    $22,100

  • Building electrical & lightingdefault

    $11,100 new × 56% good × 3.23 allocation

    $20,100

  • HVACdefault

    $12,300 new × 40% good × 3.23 allocation

    $15,900

  • Hardwood & tile floorsdefault

    $7,000 new × 40% good × 3.23 allocation

    $9,100

  • Fireplacelisting

    $2,600 new × 40% good × 3.23 allocation

    $3,400

  • Septic systemlisting

    $12,000 new × 50% good × 3.23 allocation

    $19,400

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$80,200$43,200$400$123,800
2$0$0$8,500$8,500
3$0$0$8,500$8,500
4$0$0$8,500$8,500
5$0$0$8,500$8,500
6+$0$0$296,800$296,800
Total$80,200$43,200$331,100$454,500

The building's share of the price ($439,000) is 3.2x our depreciated replacement cost of the home ($136,000). 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: California, Georgia and Wisconsin 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.