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

1842 Chapel Rd

1842 Chapel Rd

Sevierville, TN 37876

$825,000

3 bd · 3 ba · 4,275 sqft · Listed 4d ago

View on Realtor.com →
Low confidenceNegative cash flow

Year built

2017

Sqft

4,275

Lot sqft

66,211

HOA / mo

$25

Furnished

No

List date

2026-09-23T23:54:55Z

Revenue

Annual revenue

$37,160

ADR

$195

Occupancy

52%

Cleaning fees (12 mo)

$4,202

Confidence

Low (9.45), 6 comps

Comp revenue range (p25 / median / p75)

$4,817$28,170$46,610

  • Gone Fishing-Stay 4+ Nights, Save 25% |Lake Escape

    3 bd · 2 ba · sleeps 6 · 0.4 mi

    Revenue —ADR $261Occ ≈ —5★ (82)

    AirbnbVrbo

  • 3 BR cabin w/boat ramp, fire pit, hot tub

    3 bd · 3 ba · sleeps 12 · 0.4 mi

    Revenue —ADR $296Occ ≈ —5★ (1)

    Airbnb

  • Relax and Unwind at This Lake Front Cabin with a

    3 bd · 3 ba · sleeps 12 · 0.4 mi

    Revenue —ADR $542Occ ≈ —3.8★ (5)

    AirbnbVrbo

  • Lakefront w/private boat ramp/dock, hot tub, pool table, free attraction tickets

    3 bd · 3 ba · sleeps 12 · 0.4 mi

    Revenue —ADR $296Occ ≈ ——

    Vrbo

  • Lakefront Cabin・Boat Ramp/Dock・Hot Tub・Pool Table

    3 bd · 3 ba · sleeps 12 · 0.4 mi

    Revenue —ADR $171Occ ≈ ——

    AirbnbVrbo

  • Douglas Lakefront Cabin, Boat Ramp, Private Dock,

    3 bd · 3 ba · sleeps 12 · 0.5 mi

    Revenue —ADR $248Occ ≈ ——

    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

$37,160

NOI

$15,185

Cash flow /mo

-$3,180

Cash needed

$258,750

Cash-on-cash

-14.7%

ROE (yr 1)

-3.1%

Cap rate

1.8%

DSCR

0.28

Year-1 write-off

$200,238

Year-1 tax shield @ 32%

$64,076

Year-1 return on equity

  • Cash flow (annual)-$38,163
  • Principal paydown$5,399
  • Appreciation at%$24,750
ROE-3.1%
ROE incl. year-1 tax savings (32% bracket, STR loophole)21.7%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$7,432
  • Platform fees (3% of revenue)$1,115
  • Maintenance / capex (5% of revenue)$1,858
  • Utilities & supplies$4,200
  • HOA$300
  • Property tax$1,873
  • Insurance (STR-rated)$5,198

Cash needed to close

  • Down payment (25%)$206,250
  • Closing costs (4.0%)$33,000
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$64,076

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

$761,000

Short-life (5/15-yr)

$179,000 · 23%

Year-1 deduction

$200,000

Year-1 tax shield @ 32%

$64,000

Land 8% (county tax record, market value split) · building $582,000 over 39 years · new furniture $20,000

Based on: 4,275 sq ft, built 2017, 3 bd / 3 ba, unfurnished, listing features (pool, deck, covered patio, fireplace).

IRS-guide safe-harbor floor: $144,000 in year 1 (16% short-life, $46,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$76,900

  • Kitchen cabinetsdefault

    $15,200 new × 64% good × 1.13 allocation

    $11,000

  • Kitchen countertopsdefault

    $12,400 new × 64% good × 1.13 allocation

    $9,000

  • Decorative trimdefault

    $7,500 new × 64% good × 1.13 allocation

    $5,400

  • Mirrorsdefault

    $500 new × 40% good × 1.13 allocation

    $200

  • Shelvingdefault

    $1,200 new × 64% good × 1.13 allocation

    $900

  • Window coverings (43)default

    $10,800 new × 40% good × 1.13 allocation

    $4,900

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

    $11,000 new × 40% good × 1.13 allocation

    $5,000

  • Kitchen & laundry equipment plumbingdefault

    $11,800 new × 82% good × 1.13 allocation

    $10,900

  • Kitchen, laundry & data equipment electricaldefault

    $7,100 new × 82% good × 1.13 allocation

    $6,600

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

    $8,100 new × 40% good × 1.13 allocation

    $3,700

  • Furniture bought newlisting

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

    $19,500
15-year land improvements$121,500

  • Paving: driveway & walks (paved)default

    $13,600 new × 64% good × 1.13 allocation

    $9,800

  • Landscaping (typical)default

    $13,000 new × 64% good × 1.13 allocation

    $9,400

  • Covered patiolisting

    $35,300 new × 64% good × 1.13 allocation

    $25,500

  • Decks & porches (attached)listing

    $48,100 new × 55% good × 1.13 allocation

    $29,900

  • Pool (in-ground)listing

    $65,000 new × 64% good × 1.13 allocation

    $46,900
Building, 39-year$582,500

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

    $465,500 new × 85% good × 1.13 allocation

    $446,500

  • Building plumbing & fixturesdefault

    $48,300 new × 82% good × 1.13 allocation

    $44,700

  • Building electrical & lightingdefault

    $51,500 new × 82% good × 1.13 allocation

    $47,600

  • HVACdefault

    $48,200 new × 55% good × 1.13 allocation

    $29,900

  • Hardwood & tile floorsdefault

    $16,500 new × 64% good × 1.13 allocation

    $11,900

  • Fireplacelisting

    $2,600 new × 64% good × 1.13 allocation

    $1,900

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$76,900$121,500$1,900$200,200
2$0$0$14,900$14,900
3$0$0$14,900$14,900
4$0$0$14,900$14,900
5$0$0$14,900$14,900
6+$0$0$520,900$520,900
Total$76,900$121,500$582,500$780,800

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.