STR Yield
← Back to deals
MortgageCash
22712 Rovern Ranch Rd

22712 Rovern Ranch Rd

Palo Cedro, CA 96073

$1,150,000

3 bd · 2.5 ba · 2,504 sqft · Listed 25d ago

View on Realtor.com →
Low confidence

Year built

1988

Sqft

2,504

Lot sqft

304,920

HOA / mo

$0

Furnished

No

List date

2026-09-04T17:42:54.000000Z

Revenue

Annual revenue

$49,483

ADR

$255

Occupancy

53%

Cleaning fees (12 mo)

$6,270

Confidence

Low (37.22), 5 comps

Comp revenue range (p25 / median / p75)

$22,044$70,144$74,470

  • Gorgeous Lakehouse w/POOL!

    House · 2 bd · 3 ba · sleeps 10 · 1.0 mi

    Revenue $22,044ADR $560Occ ≈ 11%5★ (18)

    AirbnbVrbo

  • Modern Vacation Ranch

    House · 4 bd · 3 ba · sleeps 10 · 1.4 mi

    Revenue $74,470ADR $388Occ ≈ 53%5★ (7)

    Airbnb

  • Palo Cedro Country Family Home on Creek

    House · 3 bd · 2 ba · sleeps 7 · 1.5 mi

    Revenue $10,799ADR $221Occ ≈ 13%—

    Airbnb

  • Amazing Pool & Waterslide/Basketball/Pickleball Ct

    Guest suite · 4 bd · 2 ba · sleeps 12 · 1.5 mi

    Revenue $78,665ADR $525Occ ≈ 41%5★ (70)

    AirbnbVrbo

  • -The Bluebird- Located on our Flower Farm

    Farm stay · 4 bd · 2 ba · sleeps 6 · 1.6 mi

    Revenue $70,144ADR $494Occ ≈ 39%5★ (11)

    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

Est. revenue

$49,483

NOI

$12,050

Cash flow /mo

$1,004

Cash needed

$1,221,500

Cash-on-cash (all cash)

1.0%

ROE (yr 1)

3.8%

Cap rate

1.0%

DSCR

—

Year-1 write-off

$208,778

Year-1 tax shield @ 32%

$66,809

Year-1 return on equity

  • Cash flow (annual)$12,050
  • Principal paydown (n/a, cash)$0
  • Appreciation at%$34,500
ROE3.8%
ROE incl. year-1 tax savings (32% bracket, STR loophole)9.3%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$9,897
  • Platform fees (3% of revenue)$1,484
  • Maintenance / capex (5% of revenue)$2,474
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$14,375
  • Insurance (STR-rated)$6,728

Cash needed to close

  • Purchase price (all cash)$1,150,000
  • Closing costs (4.0%)$46,000
  • Furnishing (bought new)$25,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$66,809

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

$834,000

Short-life (5/15-yr)

$181,000 · 22%

Year-1 deduction

$209,000

Year-1 tax shield @ 32%

$67,000

Land 28% (county tax record, assessed value split) · building $653,000 over 39 years · new furniture $26,000

Based on: 2,504 sq ft, built 1988, 3 bd / 2.5 ba, unfurnished, listing features (fence, game room, fireplace, flooring types, septic).

IRS-guide safe-harbor floor: $159,000 in year 1 (16% short-life, $51,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$132,600

  • Kitchen cabinetsdefault

    $11,300 new × 40% good × 4.26 allocation

    $19,200

  • Kitchen countertopsdefault

    $9,200 new × 40% good × 4.26 allocation

    $15,700

  • Decorative trimdefault

    $4,400 new × 40% good × 4.26 allocation

    $7,500

  • Mirrorsdefault

    $300 new × 40% good × 4.26 allocation

    $500

  • Shelvingdefault

    $1,200 new × 40% good × 4.26 allocation

    $2,000

  • Window coverings (25)default

    $6,300 new × 40% good × 4.26 allocation

    $10,600

  • Carpet, vinyl & laminate (50% of floors)listing

    $8,100 new × 40% good × 4.26 allocation

    $13,700

  • Kitchen & laundry equipment plumbingdefault

    $8,800 new × 40% good × 4.26 allocation

    $15,000

  • Kitchen, laundry & data equipment electricaldefault

    $5,300 new × 40% good × 4.26 allocation

    $9,000

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

    $8,100 new × 40% good × 4.26 allocation

    $13,800

  • Furniture bought newlisting

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

    $19,500

  • Game-room equipment bought newlisting

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

    $6,000
15-year land improvements$74,100

  • Paving: driveway & walks (paved)default

    $10,400 new × 50% good × 4.26 allocation

    $22,100

  • Landscaping (typical)default

    $10,000 new × 50% good × 4.26 allocation

    $21,200

  • Patiosdefault

    $2,500 new × 50% good × 4.26 allocation

    $5,300

  • Irrigationlisting

    $3,500 new × 50% good × 4.26 allocation

    $7,400

  • Decks & porches (attached)default

    $2,500 new × 50% good × 4.26 allocation

    $5,300

  • Fencinglisting

    $6,000 new × 50% good × 4.26 allocation

    $12,800
Building, 39-year$652,600

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

    $272,100 new × 40% good × 4.26 allocation

    $463,300

  • Building plumbing & fixturesdefault

    $28,200 new × 40% good × 4.26 allocation

    $48,000

  • Building electrical & lightingdefault

    $29,000 new × 40% good × 4.26 allocation

    $49,400

  • HVACdefault

    $28,200 new × 40% good × 4.26 allocation

    $48,000

  • Hardwood & tile floorsdefault

    $8,100 new × 40% good × 4.26 allocation

    $13,700

  • Fireplacelisting

    $2,600 new × 40% good × 4.26 allocation

    $4,500

  • Septic systemlisting

    $12,000 new × 50% good × 4.26 allocation

    $25,500

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$132,600$74,100$2,100$208,800
2$0$0$16,700$16,700
3$0$0$16,700$16,700
4$0$0$16,700$16,700
5$0$0$16,700$16,700
6+$0$0$583,500$583,500
Total$132,600$74,100$652,600$859,200

The building's share of the price ($834,000) is 4.3x our depreciated replacement cost of the home ($196,000). The IRS guide treats a gap this size as a reason to review the land share: if land is worth more than the county ratio says, the basis and the write-off are smaller.

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 and Georgia disallow bonus depreciation, Ohio adds back 5/6 of it, and Tennessee has no personal income tax. Not tax advice.

Market note

Rules differ by jurisdiction. City of Redding caps whole-home vacation rentals at 400 with a 600 ft spacing rule (300 ft with a physical buffer), and its permit is NOT transferable to a new owner. Shasta Lake city and unincorporated Shasta County allow permitted rentals with no cap found, but permits also do not transfer on sale. Lodging tax ~10% plus a 2% tourism assessment in Redding. Verify parcel eligibility with the city or county before you buy.