STR Yield
← Back to deals
MortgageCash

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

2404 Balsam Cir

2404 Balsam Cir

Sevierville, TN 37876

$525,000

2 bd · 2 ba · 1,680 sqft · Listed 2d ago

View on Realtor.com →
Rental historyNegative cash flow

Year built

2004

Sqft

1,680

Lot sqft

14,375

HOA / mo

$29

Furnished

No

List date

2026-09-25T15:40:07Z

Revenue

Annual revenue

$48,656

ADR

$208

Occupancy

64%

Cleaning fees (12 mo)

$9,854

Confidence

Med (60.08), 50 comps

Comp revenue range (p25 / median / p75)

$34,148$45,774$60,307

  • *COZY 3 BD Cabin in the Woods! Hot Tub! Game Room*

    2 bd · 2 ba · sleeps 12 · 75 ft

    Revenue —ADR $261Occ ≈ —4.7★ (152)

    AirbnbVrbo

  • Smoky Mountain Gem by Avada Properties

    2 bd · 2 ba · sleeps 12 · 79 ft

    Revenue —ADR $121Occ ≈ ——

    —

  • Cozy Smoky Mtn Retreat: Hot Tub + Fire Pit + Charm

    2 bd · 1 ba · sleeps 6 · 151 ft

    Revenue —ADR $234Occ ≈ —4.8★ (61)

    AirbnbVrbo

  • Cozy Cub - Treetop Soaks, Game Nights & Cookouts

    2 bd · 2 ba · sleeps 6 · 180 ft

    Revenue —ADR $301Occ ≈ —4.3★ (6)

    AirbnbVrbo

  • Perfect Cabin in the Woods! Hot Tub & Game Room!

    2 bd · 1.5 ba · sleeps 6 · 226 ft

    Revenue —ADR $184Occ ≈ —4.6★ (149)

    AirbnbVrbo

  • Bearwatch: Your Front-Row Seat to Nature

    2 bd · 2 ba · sleeps 6 · 230 ft

    Revenue —ADR $247Occ ≈ —4.6★ (13)

    AirbnbVrbo

  • Unique Charm~Central Location~Hot Tub~Games~Loved

    2 bd · 1.5 ba · sleeps 5 · 285 ft

    Revenue —ADR $182Occ ≈ —5★ (289)

    AirbnbVrbo

  • Makin Honey by American Patriot Getaways

    2 bd · 2 ba · sleeps 4 · 312 ft

    Revenue —ADR $297Occ ≈ ——

    —

  • Cabin with Majestic Views, Hot Tub & 2 King Suites

    2 bd · 3 ba · sleeps 6 · 312 ft

    Revenue —ADR $236Occ ≈ —4.8★ (13)

    AirbnbVrbo

  • Dog-Friendly Cabin w/ Hot Tub & Great Summer Rates

    2 bd · 2 ba · sleeps 6 · 315 ft

    Revenue —ADR $199Occ ≈ —4.8★ (135)

    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

$48,656

NOI

$25,356

Cash flow /mo

-$716

Cash needed

$168,250

Cash-on-cash

-5.1%

ROE (yr 1)

6.3%

Cap rate

4.8%

DSCR

0.75

Year-1 write-off

$117,639

Year-1 tax shield @ 32%

$37,644

Year-1 return on equity

  • Cash flow (annual)-$8,592
  • Principal paydown$3,436
  • Appreciation at%$15,750
ROE6.3%
ROE incl. year-1 tax savings (32% bracket, STR loophole)28.7%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$9,731
  • Platform fees (3% of revenue)$1,460
  • Maintenance / capex (5% of revenue)$2,433
  • Utilities & supplies$4,200
  • HOA$348
  • Property tax$1,978
  • Insurance (STR-rated)$3,150

Cash needed to close

  • Down payment (25%)$131,250
  • Closing costs (4.0%)$21,000
  • Furnishing (bought new)$16,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$37,644

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

$486,000

Short-life (5/15-yr)

$100,000 · 21%

Year-1 deduction

$118,000

Year-1 tax shield @ 32%

$38,000

Land 7% (county tax record, market value split) · building $385,000 over 39 years · new furniture $16,000

Based on: 1,680 sq ft, built 2004, 2 bd / 2 ba, unfurnished, listing features (hot tub, deck, fireplace, flooring types, appliance list, septic).

IRS-guide safe-harbor floor: $73,000 in year 1 (11% short-life, $23,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$70,200

  • Kitchen cabinetsdefault

    $9,500 new × 40% good × 2.48 allocation

    $9,400

  • Kitchen countertopsdefault

    $7,800 new × 40% good × 2.48 allocation

    $7,700

  • Decorative trimdefault

    $2,900 new × 40% good × 2.48 allocation

    $2,900

  • Mirrorsdefault

    $300 new × 40% good × 2.48 allocation

    $300

  • Shelvingdefault

    $900 new × 40% good × 2.48 allocation

    $900

  • Window coverings (17)default

    $4,300 new × 40% good × 2.48 allocation

    $4,200

  • Kitchen & laundry equipment plumbingdefault

    $7,400 new × 56% good × 2.48 allocation

    $10,200

  • Kitchen, laundry & data equipment electricaldefault

    $4,500 new × 56% good × 2.48 allocation

    $6,200

  • Appliances (range, microwave, dishwasher)listing

    $3,500 new × 40% good × 2.48 allocation

    $3,500

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 2.48 allocation

    $8,900

  • Furniture bought newlisting

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

    $16,000
15-year land improvements$46,200

  • Paving: driveway & walks (paved)default

    $8,500 new × 50% good × 2.48 allocation

    $10,500

  • Landscaping (typical)default

    $8,200 new × 50% good × 2.48 allocation

    $10,100

  • Patiosdefault

    $1,700 new × 50% good × 2.48 allocation

    $2,100

  • Decks & porches (attached)listing

    $18,900 new × 50% good × 2.48 allocation

    $23,400
Building, 39-year$385,300

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

    $182,400 new × 63% good × 2.48 allocation

    $286,300

  • Building plumbing & fixturesdefault

    $18,900 new × 56% good × 2.48 allocation

    $26,200

  • Building electrical & lightingdefault

    $18,600 new × 56% good × 2.48 allocation

    $25,800

  • HVACdefault

    $18,900 new × 40% good × 2.48 allocation

    $18,800

  • Hardwood & tile floorsdefault

    $10,800 new × 40% good × 2.48 allocation

    $10,700

  • Fireplacelisting

    $2,600 new × 40% good × 2.48 allocation

    $2,600

  • Septic systemlisting

    $12,000 new × 50% good × 2.48 allocation

    $14,900

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$70,200$46,200$1,200$117,600
2$0$0$9,900$9,900
3$0$0$9,900$9,900
4$0$0$9,900$9,900
5$0$0$9,900$9,900
6+$0$0$344,600$344,600
Total$70,200$46,200$385,300$501,700

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.