STR Yield
← Back to deals
MortgageCash

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

3303 Kestrel Way

3303 Kestrel Way

Pigeon Forge, TN 37863

$850,000

5 bd · 5 ba · 2,984 sqft · Listed 4d ago

View on Realtor.com →
Est. land %Negative cash flow

Year built

2007

Sqft

2,984

Lot sqft

4,356

HOA / mo

$90

Furnished

No

List date

2026-09-23T22:45:42Z

Revenue

Annual revenue

$90,287

ADR

$475

Occupancy

52%

Cleaning fees (12 mo)

$15,220

Confidence

Med (54.42), 13 comps

Comp revenue range (p25 / median / p75)

$58,726$81,436$103,572

  • Lovely Cabin Retreat with Jacuzzi and Game Space in Tennessee

    5 bd · 5 ba · sleeps 16 · 171 ft

    Revenue —ADR $728Occ ≈ ——

    Vrbo

  • Mountain Time – Game Room, Hot Tub & Fireplace

    5 bd · 5 ba · sleeps 16 · 217 ft

    Revenue —ADR $555Occ ≈ —4.3★ (38)

    AirbnbVrbo

  • Bigfoot Lodge | 5BR Cabin, near Dollywood,/Theater

    5 bd · 5 ba · sleeps 16 · 246 ft

    Revenue —ADR $536Occ ≈ —5★ (267)

    AirbnbVrbo

  • 5BR 5BA 2 MI to Parkway Theatre Room - Game Room

    5 bd · 5 ba · sleeps 16 · 410 ft

    Revenue —ADR $486Occ ≈ —4.1★ (26)

    AirbnbVrbo

  • ERN821 - 5bd 5bth cabin in Eagles Ridge North!

    5 bd · 5 ba · sleeps 14 · 0.1 mi

    Revenue —ADR $485Occ ≈ ——

    AirbnbVrbo

  • 5BR 5BA 2 MI from Parkway Mtn Views Hot Tub

    5 bd · 5 ba · sleeps 16 · 0.2 mi

    Revenue —ADR $450Occ ≈ —4.5★ (40)

    AirbnbVrbo

  • New Luxury 5BR Cabin-Theater-Views-Hot Tub-Arcade

    5 bd · 5 ba · sleeps 12 · 0.2 mi

    Revenue —ADR $555Occ ≈ —4.9★ (35)

    AirbnbVrbo

  • "Luxury Mountain Hideaway" 5 Bedroom Home

    5 bd · 4 ba · sleeps 16 · 0.5 mi

    Revenue —ADR $1,078Occ ≈ ——

    Airbnb

  • Designer Retreat • Pool + Hot Tub | Sleeps 16

    5 bd · 5 ba · sleeps 16 · 0.5 mi

    Revenue —ADR $677Occ ≈ ——

    Airbnb

  • Pink Pines | AvantStay | Luxe Design, Indoor Pool

    5 bd · 5 ba · sleeps 16 · 0.5 mi

    Revenue —ADR $635Occ ≈ —4.6★ (20)

    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
Term

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

Est. revenue

$90,287

NOI

$50,441

Cash flow /mo

-$377

Cash needed

$279,000

Cash-on-cash

-1.6%

ROE (yr 1)

9.5%

Cap rate

5.9%

DSCR

0.92

Year-1 write-off

$159,054

Year-1 tax shield @ 32%

$50,897

Year-1 return on equity

  • Cash flow (annual)-$4,524
  • Principal paydown$5,562
  • Appreciation at%$25,500
ROE9.5%
ROE incl. year-1 tax savings (32% bracket, STR loophole)27.8%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$18,057
  • Platform fees (3% of revenue)$2,709
  • Maintenance / capex (5% of revenue)$4,514
  • Utilities & supplies$4,200
  • HOA$1,080
  • Property tax$4,186
  • Insurance (STR-rated)$5,100

Cash needed to close

  • Down payment (25%)$212,500
  • Closing costs (4.0%)$34,000
  • Furnishing (bought new)$32,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$50,897

No county tax record split for property tax, insurance rate and the land/building split, so those use market defaults — edit the price above; 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

$723,000

Short-life (5/15-yr)

$125,000 · 17%

Year-1 deduction

$159,000

Year-1 tax shield @ 32%

$51,000

Land 15% (market default, no usable tax-record split) · building $598,000 over 39 years · new furniture $33,000

Based on: 2,984 sq ft, built 2007, 5 bd / 5 ba, unfurnished, listing features (hot tub, deck, game room, fireplace, flooring types, septic).

IRS-guide safe-harbor floor: $100,000 in year 1 (9% short-life, $32,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$97,000

  • Kitchen cabinetsdefault

    $12,300 new × 40% good × 2.05 allocation

    $10,100

  • Kitchen countertopsdefault

    $10,100 new × 40% good × 2.05 allocation

    $8,300

  • Decorative trimdefault

    $5,200 new × 40% good × 2.05 allocation

    $4,300

  • Mirrorsdefault

    $800 new × 40% good × 2.05 allocation

    $600

  • Shelvingdefault

    $1,800 new × 40% good × 2.05 allocation

    $1,500

  • Window coverings (30)default

    $7,500 new × 40% good × 2.05 allocation

    $6,100

  • Kitchen & laundry equipment plumbingdefault

    $9,600 new × 62% good × 2.05 allocation

    $12,200

  • Kitchen, laundry & data equipment electricaldefault

    $5,800 new × 62% good × 2.05 allocation

    $7,400

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

    $8,100 new × 40% good × 2.05 allocation

    $6,600

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 2.05 allocation

    $7,400

  • Furniture bought newlisting

    $26,500 new × 100% good · bought separately

    $26,500

  • Game-room equipment bought newlisting

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

    $6,000
15-year land improvements$60,200

  • Paving: driveway & walks (paved)default

    $11,300 new × 50% good × 2.05 allocation

    $11,600

  • Landscaping (typical)default

    $10,900 new × 50% good × 2.05 allocation

    $11,200

  • Patiosdefault

    $2,900 new × 50% good × 2.05 allocation

    $3,000

  • Decks & porches (attached)listing

    $33,600 new × 50% good × 2.05 allocation

    $34,400
Building, 39-year$597,900

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

    $323,500 new × 68% good × 2.05 allocation

    $452,800

  • Building plumbing & fixturesdefault

    $33,600 new × 62% good × 2.05 allocation

    $42,700

  • Building electrical & lightingdefault

    $35,100 new × 62% good × 2.05 allocation

    $44,600

  • HVACdefault

    $33,600 new × 40% good × 2.05 allocation

    $27,500

  • Hardwood & tile floorsdefault

    $19,200 new × 40% good × 2.05 allocation

    $15,700

  • Fireplacelisting

    $2,600 new × 40% good × 2.05 allocation

    $2,200

  • Septic systemlisting

    $12,000 new × 50% good × 2.05 allocation

    $12,300

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$97,000$60,200$1,900$159,100
2$0$0$15,300$15,300
3$0$0$15,300$15,300
4$0$0$15,300$15,300
5$0$0$15,300$15,300
6+$0$0$534,600$534,600
Total$97,000$60,200$597,900$755,000

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.