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

2428 Frost Valley Ct

2428 Frost Valley Ct

Sevierville, TN 37876

$335,000

3 bd · 2 ba · 1,404 sqft · Listed 8d ago

View on Realtor.com →
Low confidence

Year built

2009

Sqft

1,404

Lot sqft

10,019

HOA / mo

None

Furnished

No

List date

2026-11-04T11:37:08.000000Z

Revenue

Annual revenue

$52,060

ADR

$316

Occupancy

45%

Cleaning fees (12 mo)

$8,036

Confidence

Low (45), 6 comps

Comp revenue range (p25 / median / p75)

$32,934$48,983$54,781

Median revenue of shown comps: $48,983

  • River Front Fun! Tubing, Kayak, Fishing on River!

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.3 mi

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +5

    Revenue $55,221ADR $301Occ ≈ 50%4.7★ (135)

    AirbnbVrbo

  • #6 Cozy Cabin on the River-Good Roads-Pigeon Forge

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.3 mi

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +6

    Revenue $53,461ADR $276Occ ≈ 53%4.5★ (208)

    AirbnbVrbo

  • Cabin on the river- 10 mins to Dollywood and town

    Cabin · 3 bd · 2.5 ba · sleeps 10 · 0.5 mi

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +5

    Revenue $62,485ADR $376Occ ≈ 46%4.9★ (89)

    AirbnbVrbo

  • Close to Dollywood, dog friendly, hot tub, yard!

    Chalet · 3 bd · 2 ba · sleeps 6 · 0.6 mi

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +5

    Revenue $44,505ADR $371Occ ≈ 33%4.5★ (6)

    AirbnbVrbo

  • Pristine Mountain Vista

    House · 3 bd · 2 ba · sleeps 9 · 0.7 mi

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +2

    Revenue $29,077ADR $316Occ ≈ 25%5★ (8)

    AirbnbVrbo

  • New! Mtn-View Home | Hot Tub w/ TV | Arcade | Pets

    House · 3 bd · 2 ba · sleeps 9 · 0.7 mi

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +6

    Revenue $1,365ADR $227Occ ≈ 2%4.5★ (4)

    Airbnb

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

$52,060

NOI

$30,306

Cash flow /mo

$694

Cash needed

$116,650

Cash-on-cash

7.1%

ROE (yr 1)

17.6%

Cap rate

9.0%

DSCR

1.38

Year-1 write-off

$79,585

Year-1 tax shield @ 32%

$25,467

Year-1 return on equity

  • Cash flow (annual)$8,330
  • Principal paydown$2,128
  • Appreciation at%$10,050
ROE17.6%

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)$10,412
  • Platform fees (3% of revenue)$1,562
  • Maintenance / capex (5% of revenue)$2,603
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$967
  • Insurance (STR-rated)$2,010

Cash needed to close

  • Down payment (25%)$83,750
  • Closing costs (4.0%)$13,400
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$25,467

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

$242,000

Short-life (5/15-yr)

$60,000 · 25%

Year-1 deduction

$80,000

Year-1 tax shield @ 32%

$25,000

Land 28% (county tax record, market value split) · building $182,000 over 39 years · new furniture $20,000

Based on: 1,404 sq ft, built 2009, 3 bd / 2 ba, unfurnished, listing features (deck, patio, fence, flooring types, appliance list).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $58,000 in year 1 (16% short-life, $19,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$50,300

  • Kitchen cabinetsdefault

    $8,900 new × 40% good × 1.34 allocation

    $4,800

  • Kitchen countertopsdefault

    $7,300 new × 40% good × 1.34 allocation

    $3,900

  • Decorative trimdefault

    $2,500 new × 40% good × 1.34 allocation

    $1,300

  • Mirrorsdefault

    $300 new × 40% good × 1.34 allocation

    $200

  • Shelvingdefault

    $1,200 new × 40% good × 1.34 allocation

    $600

  • Window coverings (14)default

    $3,500 new × 40% good × 1.34 allocation

    $1,900

  • Carpet, vinyl & laminate (100% of floors)listing

    $9,000 new × 40% good × 1.34 allocation

    $4,900

  • Kitchen & laundry equipment plumbingdefault

    $6,900 new × 66% good × 1.34 allocation

    $6,100

  • Kitchen, laundry & data equipment electricaldefault

    $4,200 new × 66% good × 1.34 allocation

    $3,700

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

    $6,300 new × 40% good × 1.34 allocation

    $3,400

  • Furniture bought newlisting

    $19,500 new × 100% good · bought separately

    $19,500
15-year land improvements$29,100

  • Paving: driveway & walks (paved)default

    $7,800 new × 50% good × 1.34 allocation

    $5,200

  • Landscaping (typical)default

    $7,500 new × 50% good × 1.34 allocation

    $5,000

  • Patioslisting

    $6,300 new × 50% good × 1.34 allocation

    $4,200

  • Decks & porches (attached)listing

    $15,800 new × 50% good × 1.34 allocation

    $10,600

  • Fencinglisting

    $6,000 new × 50% good × 1.34 allocation

    $4,000
Building, 39-year$182,200

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

    $151,900 new × 72% good × 1.34 allocation

    $146,300

  • Building plumbing & fixturesdefault

    $15,800 new × 66% good × 1.34 allocation

    $14,000

  • Building electrical & lightingdefault

    $15,100 new × 66% good × 1.34 allocation

    $13,400

  • HVACdefault

    $15,800 new × 40% good × 1.34 allocation

    $8,500

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$50,300$29,100$200$79,600
2$0$0$4,700$4,700
3$0$0$4,700$4,700
4$0$0$4,700$4,700
5$0$0$4,700$4,700
6+$0$0$163,300$163,300
Total$50,300$29,100$182,200$261,500

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.