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

1334 Reedmont Way

1334 Reedmont Way

Sevierville, TN 37876

$939,820

3 bd · 2.5 ba · 2,308 sqft · Listed 2d ago

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

Year built

2025

Sqft

2,308

Lot sqft

436

HOA / mo

$199

Furnished

No

List date

2026-09-25T15:57:55Z

Revenue

Annual revenue

$55,618

ADR

$247

Occupancy

62%

Cleaning fees (12 mo)

$9,165

Confidence

Low (43.55), 17 comps

Comp revenue range (p25 / median / p75)

$37,227$48,373$77,322

  • Brand New Lookout Rooftop Deck & Hot tub

    3 bd · 3 ba · sleeps 6 · 95 ft

    Revenue —ADR $341Occ ≈ —4★ (7)

    AirbnbVrbo

  • Family Luxury Stay, Sleeps 6・Roof Deck + Hot Tub

    3 bd · 3 ba · sleeps 6 · 95 ft

    Revenue —ADR $324Occ ≈ —4.8★ (28)

    Airbnb

  • Family Luxury Stay, Sleeps 6, Roof Deck & Hot Tub

    3 bd · 3 ba · sleeps 6 · 95 ft

    Revenue —ADR $280Occ ≈ —4.8★ (21)

    AirbnbVrbo

  • Pickleball, Cold Plunge, Hot Tub, Game Room, Views

    3 bd · 3 ba · sleeps 8 · 213 ft

    Revenue —ADR $473Occ ≈ —5★ (9)

    AirbnbVrbo

  • Pickleball, Sauna, Hot Tub, Game Room & Decks

    3 bd · 3 ba · sleeps 10 · 377 ft

    Revenue —ADR $385Occ ≈ —5★ (15)

    AirbnbVrbo

  • Luxury Getaway, Sleeps 6・Views, Hot tub, Roof Deck

    3 bd · 2.5 ba · sleeps 6 · 387 ft

    Revenue —ADR $342Occ ≈ —4.9★ (71)

    AirbnbVrbo

  • Cozy Family Luxe Cabin, Sleeps 6, Roof Deck, Hot T

    3 bd · 3 ba · sleeps 6 · 482 ft

    Revenue —ADR $271Occ ≈ —4.2★ (17)

    AirbnbVrbo

  • Serene Cabin Retreat・Rooftop Deck・Hot Tub・Games

    3 bd · 3 ba · sleeps 6 · 486 ft

    Revenue —ADR $313Occ ≈ —4.8★ (45)

    AirbnbVrbo

  • Cozy cabin retreat w Hot Tub & Rooftop Deck near Dollywood

    3 bd · 3 ba · sleeps 6 · 489 ft

    Revenue —ADR $256Occ ≈ —1★ (1)

    —

  • Modern Luxe Cabin | Hot Tub, Fire Pits & Game Room

    3 bd · 3 ba · sleeps 8 · 0.2 mi

    Revenue —ADR $383Occ ≈ —5★ (46)

    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

$55,618

NOI

$24,018

Cash flow /mo

-$3,063

Cash needed

$292,048

Cash-on-cash

-12.6%

ROE (yr 1)

-0.8%

Cap rate

2.6%

DSCR

0.40

Year-1 write-off

$200,228

Year-1 tax shield @ 32%

$64,073

Year-1 return on equity

  • Cash flow (annual)-$36,754
  • Principal paydown$6,150
  • Appreciation at%$28,195
ROE-0.8%
ROE incl. year-1 tax savings (32% bracket, STR loophole)21.1%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$11,124
  • Platform fees (3% of revenue)$1,669
  • Maintenance / capex (5% of revenue)$2,781
  • Utilities & supplies$4,200
  • HOA$2,388
  • Property tax$3,800
  • Insurance (STR-rated)$5,639

Cash needed to close

  • Down payment (25%)$234,955
  • Closing costs (4.0%)$37,593
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$64,073

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

$799,000

Short-life (5/15-yr)

$179,000 · 22%

Year-1 deduction

$200,000

Year-1 tax shield @ 32%

$64,000

Land 15% (market default, no usable tax-record split) · building $620,000 over 39 years · new furniture $20,000

Based on: 2,308 sq ft, built 2025, 3 bd / 2.5 ba, unfurnished, listing features (deck, patio, fireplace, flooring types, appliance list, wooded lot).

IRS-guide safe-harbor floor: $112,000 in year 1 (11% short-life, $36,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$109,800

  • Kitchen cabinetsdefault

    $10,900 new × 96% good × 1.81 allocation

    $18,900

  • Kitchen countertopsdefault

    $8,900 new × 96% good × 1.81 allocation

    $15,500

  • Decorative trimdefault

    $4,000 new × 96% good × 1.81 allocation

    $7,000

  • Mirrorsdefault

    $300 new × 92% good × 1.81 allocation

    $500

  • Shelvingdefault

    $1,200 new × 96% good × 1.81 allocation

    $2,100

  • Window coverings (23)default

    $5,800 new × 90% good × 1.81 allocation

    $9,400

  • Kitchen & laundry equipment plumbingdefault

    $8,400 new × 98% good × 1.81 allocation

    $15,000

  • Kitchen, laundry & data equipment electricaldefault

    $5,100 new × 98% good × 1.81 allocation

    $9,100

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

    $7,700 new × 92% good × 1.81 allocation

    $12,800

  • Furniture bought newlisting

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

    $19,500
15-year land improvements$88,500

  • Paving: driveway & walks (paved)default

    $10,000 new × 96% good × 1.81 allocation

    $17,300

  • Landscaping (minimal)listing

    $4,800 new × 96% good × 1.81 allocation

    $8,300

  • Patioslisting

    $10,400 new × 96% good × 1.81 allocation

    $18,100

  • Decks & porches (attached)listing

    $26,000 new × 95% good × 1.81 allocation

    $44,700
Building, 39-year$620,100

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

    $250,700 new × 98% good × 1.81 allocation

    $447,000

  • Building plumbing & fixturesdefault

    $26,000 new × 98% good × 1.81 allocation

    $46,200

  • Building electrical & lightingdefault

    $26,500 new × 98% good × 1.81 allocation

    $47,100

  • HVACdefault

    $26,000 new × 95% good × 1.81 allocation

    $44,800

  • Hardwood & tile floorsdefault

    $14,900 new × 96% good × 1.81 allocation

    $25,900

  • Fireplaces (2)listing

    $5,300 new × 96% good × 1.81 allocation

    $9,200

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$109,800$88,500$2,000$200,200
2$0$0$15,900$15,900
3$0$0$15,900$15,900
4$0$0$15,900$15,900
5$0$0$15,900$15,900
6+$0$0$554,500$554,500
Total$109,800$88,500$620,100$818,300

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.