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

4170 Mountain Rest Way

4170 Mountain Rest Way

Sevierville, TN 37876

$615,000

2 bd · 2 ba · 1,070 sqft · Listed 4d ago

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

Year built

2026

Sqft

1,070

Lot sqft

86,249

HOA / mo

$25

Furnished

No

List date

2026-09-23T02:04:34Z

Revenue

Annual revenue

$42,860

ADR

$185

Occupancy

63%

Cleaning fees (12 mo)

$7,996

Confidence

Low (40.73), 25 comps

Comp revenue range (p25 / median / p75)

$21,628$46,762$59,316

  • 18MinutestoDollywood~2BR PrivateMtnViews~Hot Tub

    2 bd · 2.5 ba · sleeps 6 · 266 ft

    Revenue —ADR $173Occ ≈ —4.8★ (60)

    AirbnbVrbo

  • Secluded Modern Luxury Cabin minutes from Parkway

    2 bd · 2.5 ba · sleeps 6 · 276 ft

    Revenue —ADR $308Occ ≈ —5★ (35)

    AirbnbVrbo

  • Peaceful 2br in Mountains w/ Private Hot Tub!

    2 bd · 2 ba · sleeps 6 · 331 ft

    Revenue —ADR $166Occ ≈ —4.2★ (46)

    AirbnbVrbo

  • Romantic + Cozy + Hot tub & views Smoky Mountain

    2 bd · 2 ba · sleeps 4 · 0.1 mi

    Revenue —ADR $178Occ ≈ —4.9★ (210)

    AirbnbVrbo

  • Dolly's Place! Mountain View, Hot Tub, Pickleball!

    2 bd · 2.5 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $250Occ ≈ —5★ (22)

    Airbnb

  • 20MinutestoGatlinburg/2BRHoneymoon/MtnView/Hot Tub

    2 bd · 2.5 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $169Occ ≈ —4.7★ (58)

    AirbnbVrbo

  • Cozy Cub! Hot Tub, Close To Dollywood, Pickleball!

    2 bd · 2.5 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $256Occ ≈ —5★ (20)

    Airbnb

  • Smoky Mtn Retreat! Mtn View, Pickleball & Hot Tub!

    2 bd · 2.5 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $242Occ ≈ —4.8★ (24)

    Airbnb

  • 18MinutestoPigeonForgeStrip/2BRHoneymoon/Hot Tub

    2 bd · 2.5 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $178Occ ≈ —4.8★ (70)

    Airbnb

  • Private|Outdoor Theater|Bocce|2 Firepits|King Bed

    2 bd · 2 ba · sleeps 6 · 0.2 mi

    Revenue —ADR $300Occ ≈ —5★ (138)

    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

$42,860

NOI

$22,595

Cash flow /mo

-$1,431

Cash needed

$194,350

Cash-on-cash

-8.8%

ROE (yr 1)

2.7%

Cap rate

3.7%

DSCR

0.57

Year-1 write-off

$171,778

Year-1 tax shield @ 32%

$54,969

Year-1 return on equity

  • Cash flow (annual)-$17,173
  • Principal paydown$4,024
  • Appreciation at%$18,450
ROE2.7%
ROE incl. year-1 tax savings (32% bracket, STR loophole)31.0%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$8,572
  • Platform fees (3% of revenue)$1,286
  • Maintenance / capex (5% of revenue)$2,143
  • Utilities & supplies$4,200
  • HOA$300
  • Property tax$74
  • Insurance (STR-rated)$3,690

Cash needed to close

  • Down payment (25%)$153,750
  • Closing costs (4.0%)$24,600
  • Furnishing (bought new)$16,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$54,969

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

$523,000

Short-life (5/15-yr)

$155,000 · 30%

Year-1 deduction

$172,000

Year-1 tax shield @ 32%

$55,000

Land 15% (market default, no usable tax-record split) · building $368,000 over 39 years · new furniture $16,000

Based on: 1,070 sq ft, built 2026, 2 bd / 2 ba, unfurnished, listing features (hot tub, fireplace).

IRS-guide safe-harbor floor: $128,000 in year 1 (21% short-life, $41,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$134,500

  • Kitchen cabinetsdefault

    $8,100 new × 100% good × 2.34 allocation

    $19,100

  • Kitchen countertopsdefault

    $6,700 new × 100% good × 2.34 allocation

    $15,600

  • Decorative trimdefault

    $1,900 new × 100% good × 2.34 allocation

    $4,400

  • Mirrorsdefault

    $300 new × 100% good × 2.34 allocation

    $700

  • Shelvingdefault

    $900 new × 100% good × 2.34 allocation

    $2,100

  • Window coverings (11)default

    $2,800 new × 100% good × 2.34 allocation

    $6,400

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

    $2,800 new × 100% good × 2.34 allocation

    $6,400

  • Kitchen & laundry equipment plumbingdefault

    $6,300 new × 100% good × 2.34 allocation

    $14,800

  • Kitchen, laundry & data equipment electricaldefault

    $3,800 new × 100% good × 2.34 allocation

    $9,000

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

    $8,100 new × 100% good × 2.34 allocation

    $19,000

  • Hot tub (freestanding)listing

    $9,000 new × 100% good × 2.34 allocation

    $21,100

  • Furniture bought newlisting

    $16,000 new × 100% good · bought separately

    $16,000
15-year land improvements$36,100

  • Paving: driveway & walks (paved)default

    $6,800 new × 100% good × 2.34 allocation

    $15,900

  • Landscaping (typical)default

    $6,500 new × 100% good × 2.34 allocation

    $15,300

  • Patiosdefault

    $1,100 new × 100% good × 2.34 allocation

    $2,500

  • Decks & porches (attached)default

    $1,100 new × 100% good × 2.34 allocation

    $2,500
Building, 39-year$368,200

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

    $115,700 new × 100% good × 2.34 allocation

    $270,700

  • Building plumbing & fixturesdefault

    $12,000 new × 100% good × 2.34 allocation

    $28,000

  • Building electrical & lightingdefault

    $10,800 new × 100% good × 2.34 allocation

    $25,400

  • HVACdefault

    $12,100 new × 100% good × 2.34 allocation

    $28,200

  • Hardwood & tile floorsdefault

    $4,100 new × 100% good × 2.34 allocation

    $9,700

  • Fireplacelisting

    $2,600 new × 100% good × 2.34 allocation

    $6,200

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$134,500$36,100$1,200$171,800
2$0$0$9,400$9,400
3$0$0$9,400$9,400
4$0$0$9,400$9,400
5$0$0$9,400$9,400
6+$0$0$329,200$329,200
Total$134,500$36,100$368,200$538,700

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.