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

670 Magic Kingdom Ln

670 Magic Kingdom Ln

Sevierville, TN 37876

$750,000

4 bd · 3 ba · 1,904 sqft · Listed 3d ago

View on Realtor.com →
Negative cash flow

Year built

2017

Sqft

1,904

Lot sqft

24,829

HOA / mo

$0

Furnished

No

List date

2026-09-24T13:56:24.000000Z

Revenue

Annual revenue

$75,570

ADR

$304

Occupancy

68%

Cleaning fees (12 mo)

$11,900

Confidence

High (83.99), 9 comps

Comp revenue range (p25 / median / p75)

$70,417$78,412$86,370

  • Mountain View Chalet Pool Table Theater Room Internet Hot Tub-Convenient toPrkwy

    Chalet · 4 bd · 3 ba · sleeps 11 · 16 ft

    Revenue $70,183ADR $312Occ ≈ 62%4.2★ (15)

    VrboBooking

  • 5 stars! • Hot Tub• Theater• Pool Table• EZ Roads!

    Cabin · 4 bd · 3 ba · sleeps 10 · 256 ft

    Revenue $85,277ADR $389Occ ≈ 60%5★ (102)

    AirbnbVrboBooking

  • Firefly Bluff

    Cabin · 4 bd · 2 ba · sleeps 10 · 0.1 mi

    Revenue $78,412ADR $407Occ ≈ 53%4.7★ (25)

    AirbnbVrbo

  • Private Mt. Views Hot Tub Pool Table Screened Deck

    Cabin · 4 bd · 3 ba · sleeps 10 · 0.2 mi

    Revenue $74,199ADR $307Occ ≈ 66%4.8★ (159)

    AirbnbVrboBooking

  • Easy Access - Semi Secluded - Pet Welcoming

    Cabin · 4 bd · 3 ba · sleeps 14 · 0.3 mi

    Revenue $65,773ADR $426Occ ≈ 42%4.5★ (9)

    AirbnbVrbo

  • Serene 4BdRm Cabin w Outdoor KIT/FRPLC/Treehouse

    Cabin · 4 bd · 3.5 ba · sleeps 13 · 0.5 mi

    Revenue $86,370ADR $483Occ ≈ 49%5★ (132)

    AirbnbVrboBooking

  • Two Dancing Bear Cubs by American Patriot Getaways

    Vacation home · 4 bd · 3 ba · sleeps 9 · 0.5 mi

    Revenue $104,628ADR $423Occ ≈ 68%—

    Booking

  • Views | Hottub | 7 beds | Kids room | PS5

    House · 4 bd · 3 ba · sleeps 12 · 0.6 mi

    Revenue $70,417ADR $401Occ ≈ 48%5★ (89)

    Airbnb

  • Sasquatch Adventure - Hot tub, Fireplace, & Arcade!

    Vacation home · 4 bd · 2 ba · sleeps 8 · 0.6 mi

    Revenue $96,377ADR $418Occ ≈ 63%—

    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

$75,570

NOI

$44,422

Cash flow /mo

-$340

Cash needed

$240,500

Cash-on-cash

-1.7%

ROE (yr 1)

9.7%

Cap rate

5.9%

DSCR

0.92

Year-1 write-off

$153,874

Year-1 tax shield @ 32%

$49,240

Year-1 return on equity

  • Cash flow (annual)-$4,075
  • Principal paydown$4,908
  • Appreciation at%$22,500
ROE9.7%
ROE incl. year-1 tax savings (32% bracket, STR loophole)30.2%
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)$3,779
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$1,288
  • Insurance (STR-rated)$4,500

Cash needed to close

  • Down payment (25%)$187,500
  • Closing costs (4.0%)$30,000
  • Furnishing (bought new)$23,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$49,240

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

$696,000

Short-life (5/15-yr)

$129,000 · 19%

Year-1 deduction

$154,000

Year-1 tax shield @ 32%

$49,000

Land 7% (county tax record, market value split) · building $567,000 over 39 years · new furniture $23,000

Based on: 1,904 sq ft, built 2017, 4 bd / 3 ba, unfurnished, listing features (deck, fireplace, septic, wooded lot).

IRS-guide safe-harbor floor: $90,000 in year 1 (9% short-life, $29,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$100,300

  • Kitchen cabinetsdefault

    $10,000 new × 64% good × 2.40 allocation

    $15,300

  • Kitchen countertopsdefault

    $8,200 new × 64% good × 2.40 allocation

    $12,500

  • Decorative trimdefault

    $3,300 new × 64% good × 2.40 allocation

    $5,100

  • Mirrorsdefault

    $500 new × 40% good × 2.40 allocation

    $400

  • Shelvingdefault

    $1,500 new × 64% good × 2.40 allocation

    $2,300

  • Window coverings (19)default

    $4,800 new × 40% good × 2.40 allocation

    $4,600

  • Carpet, vinyl & laminate (40% of floors)default

    $4,900 new × 40% good × 2.40 allocation

    $4,700

  • Kitchen & laundry equipment plumbingdefault

    $7,800 new × 82% good × 2.40 allocation

    $15,300

  • Kitchen, laundry & data equipment electricaldefault

    $4,700 new × 82% good × 2.40 allocation

    $9,200

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

    $8,100 new × 40% good × 2.40 allocation

    $7,800

  • Furniture bought newlisting

    $23,000 new × 100% good · bought separately

    $23,000
15-year land improvements$51,800

  • Paving: driveway & walks (paved)default

    $9,000 new × 64% good × 2.40 allocation

    $13,900

  • Landscaping (minimal)listing

    $4,400 new × 64% good × 2.40 allocation

    $6,700

  • Patiosdefault

    $1,900 new × 64% good × 2.40 allocation

    $2,900

  • Decks & porches (attached)listing

    $21,400 new × 55% good × 2.40 allocation

    $28,300
Building, 39-year$567,100

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

    $206,100 new × 85% good × 2.40 allocation

    $420,600

  • Building plumbing & fixturesdefault

    $21,400 new × 82% good × 2.40 allocation

    $42,200

  • Building electrical & lightingdefault

    $21,400 new × 82% good × 2.40 allocation

    $42,100

  • HVACdefault

    $21,400 new × 55% good × 2.40 allocation

    $28,300

  • Hardwood & tile floorsdefault

    $7,400 new × 64% good × 2.40 allocation

    $11,300

  • Fireplacelisting

    $2,600 new × 64% good × 2.40 allocation

    $4,000

  • Septic systemlisting

    $12,000 new × 64% good × 2.40 allocation

    $18,400

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$100,300$51,800$1,800$153,900
2$0$0$14,500$14,500
3$0$0$14,500$14,500
4$0$0$14,500$14,500
5$0$0$14,500$14,500
6+$0$0$507,100$507,100
Total$100,300$51,800$567,100$719,100

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.