STR Yield
← Back to deals
MortgageCash

Rate 7.93% = 7.18% Freddie Mac 30-yr avg (Nov 5) + 0.75% investor premium

2163 Aaron Ct

2163 Aaron Ct

Sevierville, TN 37876

$460,000

3 bd · 2 ba · 1,713 sqft · Listed 8d ago

View on Realtor.com →
Low confidenceNegative cash flow

Year built

2018

Sqft

1,713

Lot sqft

25,265

HOA / mo

None

Furnished

No

List date

2026-11-04T14:25:44.000000Z

Revenue

Annual revenue

$37,823

ADR

$253

Occupancy

41%

Cleaning fees (12 mo)

$6,972

Confidence

High (75.15), 5 comps

Comp revenue range (p25 / median / p75)

$28,598$29,077$35,747

Median revenue of shown comps: $29,077

  • Pristine Mountain Vista

    House · 3 bd · 2 ba · sleeps 9 · 0.3 mi

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +2

    Revenue $29,077ADR $316Occ ≈ 25%5★ (8)

    AirbnbVrbo

  • Close to Dollywood, dog friendly, hot tub, yard!

    Chalet · 3 bd · 2 ba · sleeps 6 · 0.4 mi

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +5

    Revenue $44,505ADR $371Occ ≈ 33%4.5★ (6)

    AirbnbVrbo

  • Smokies and Smores Riverside Firepit Flexible Cancellation pet friendly.

    House · 3 bd · 3 ba · sleeps 8 · 0.5 mi

    • A/C
    • Free parking
    • Pets OK
    • Wifi
    • +2

    Revenue $35,747ADR $226Occ ≈ 43%4.9★ (11)

    Vrbo

  • Simple Southern Charm - Close to all Attractions!

    House · 3 bd · 2 ba · sleeps 8 · 0.7 mi

    • A/C
    • Free parking
    • Wifi
    • Kitchen
    • +2

    Revenue $23,738ADR $186Occ ≈ 35%4.6★ (68)

    AirbnbVrbo

  • Game Room + Fire Pit | Minutes from Dollywood

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.7 mi

    • A/C
    • Free parking
    • Wifi
    • Kitchen
    • +2

    Revenue $28,598ADR $213Occ ≈ 37%5★ (30)

    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
Management
Term

Rate 7.93% = 7.18% Freddie Mac 30-yr avg (Nov 5) + 0.75% investor premium

Est. revenue

$37,823

NOI

$19,389

Cash flow /mo

-$899

Cash needed

$152,900

Cash-on-cash

-7.1%

ROE (yr 1)

3.9%

Cap rate

4.2%

DSCR

0.64

Year-1 write-off

$110,959

Year-1 tax shield @ 32%

$35,507

Year-1 return on equity

  • Cash flow (annual)-$10,788
  • Principal paydown$2,922
  • Appreciation at%$13,800
ROE3.9%

Tax savings aren't counted. Turn on “Count tax savings in returns” above if you can use the losses.

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$7,565
  • Platform fees (3% of revenue)$1,135
  • Maintenance / capex (5% of revenue)$1,891
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$884
  • Insurance (STR-rated)$2,760

Cash needed to close

  • Down payment (25%)$115,000
  • Closing costs (4.0%)$18,400
  • Furnishing (bought new)$19,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$35,507

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

$412,000

Short-life (5/15-yr)

$91,000 · 22%

Year-1 deduction

$111,000

Year-1 tax shield @ 32%

$36,000

Land 10% (county tax record, market value split) · building $321,000 over 39 years · new furniture $20,000

Based on: 1,713 sq ft, built 2018, 3 bd / 2 ba, unfurnished, listing features (deck, fence, fireplace, flooring types, appliance list, septic).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $72,000 in year 1 (13% short-life, $23,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$69,100

  • Kitchen cabinetsdefault

    $9,600 new × 68% good × 1.49 allocation

    $9,700

  • Kitchen countertopsdefault

    $7,800 new × 68% good × 1.49 allocation

    $7,900

  • Decorative trimdefault

    $3,000 new × 68% good × 1.49 allocation

    $3,000

  • Mirrorsdefault

    $300 new × 40% good × 1.49 allocation

    $200

  • Shelvingdefault

    $1,200 new × 68% good × 1.49 allocation

    $1,200

  • Window coverings (17)default

    $4,300 new × 40% good × 1.49 allocation

    $2,500

  • Carpet, vinyl & laminate (100% of floors)listing

    $11,000 new × 40% good × 1.49 allocation

    $6,600

  • Kitchen & laundry equipment plumbingdefault

    $7,400 new × 84% good × 1.49 allocation

    $9,300

  • Kitchen, laundry & data equipment electricaldefault

    $4,500 new × 84% good × 1.49 allocation

    $5,600

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

    $5,700 new × 40% good × 1.49 allocation

    $3,400

  • Furniture bought newlisting

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

    $19,500
15-year land improvements$41,500

  • Paving: driveway & walks (paved)default

    $8,600 new × 68% good × 1.49 allocation

    $8,700

  • Landscaping (typical)default

    $8,300 new × 68% good × 1.49 allocation

    $8,400

  • Patiosdefault

    $1,700 new × 68% good × 1.49 allocation

    $1,700

  • Decks & porches (attached)listing

    $19,300 new × 60% good × 1.49 allocation

    $17,300

  • Fencinglisting

    $6,000 new × 60% good × 1.49 allocation

    $5,400
Building, 39-year$320,700

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

    $185,700 new × 87% good × 1.49 allocation

    $240,500

  • Building plumbing & fixturesdefault

    $19,300 new × 84% good × 1.49 allocation

    $24,200

  • Building electrical & lightingdefault

    $19,000 new × 84% good × 1.49 allocation

    $23,800

  • HVACdefault

    $19,300 new × 60% good × 1.49 allocation

    $17,300

  • Fireplacelisting

    $2,600 new × 68% good × 1.49 allocation

    $2,700

  • Septic systemlisting

    $12,000 new × 68% good × 1.49 allocation

    $12,200

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$69,100$41,500$300$111,000
2$0$0$8,200$8,200
3$0$0$8,200$8,200
4$0$0$8,200$8,200
5$0$0$8,200$8,200
6+$0$0$287,500$287,500
Total$69,100$41,500$320,700$431,300

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: California, Georgia and Wisconsin disallow 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.