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

2251 Upper Middle Creek Rd Unit L12

2251 Upper Middle Creek Rd Unit L12

Sevierville, TN 37876

$619,000

4 bd · 3 ba · 2,039 sqft · Listed 4d ago

View on Realtor.com →
Rental historyEst. land %Negative cash flow

Year built

2007

Sqft

2,039

Lot sqft

—

HOA / mo

$300

Furnished

No

List date

2026-09-23T23:40:58Z

Revenue

Annual revenue

$67,255

ADR

$345

Occupancy

53%

Cleaning fees (12 mo)

$11,365

Confidence

Med (52.53), 44 comps

Comp revenue range (p25 / median / p75)

$39,191$49,345$68,504

  • Amazing Views & 5 miles from Dollywood / Parkway 4 bedroom + game room + WiFi

    4 bd · 3 ba · sleeps 12 · 0 ft

    Revenue —ADR $390Occ ≈ —4.8★ (211)

    Vrbo

  • Fall Getaway• Mountain Views• Hot Tub• Dollywood

    4 bd · 3 ba · sleeps 12 · 16 ft

    Revenue —ADR $351Occ ≈ —4.8★ (20)

    AirbnbVrbo

  • "On The Rocks" 4 Bedroom Cabin

    4 bd · 3 ba · sleeps 14 · 203 ft

    Revenue —ADR $441Occ ≈ ——

    AirbnbVrbo

  • Panoramic MtnVws-EVChgr-PoolTbl-HotTub-NearDlywood

    4 bd · 3 ba · sleeps 12 · 302 ft

    Revenue —ADR $331Occ ≈ —5★ (29)

    AirbnbVrbo

  • Million Dollar Views | Dog Friendly Escape

    4 bd · 3 ba · sleeps 12 · 305 ft

    Revenue —ADR $352Occ ≈ —5★ (163)

    AirbnbVrbo

  • All About The View-great views, close to Dollywood

    4 bd · 3 ba · sleeps 10 · 305 ft

    Revenue —ADR $345Occ ≈ —3.9★ (45)

    AirbnbVrbo

  • The Majestic View- close to Pigeon Forge!

    4 bd · 3 ba · sleeps 10 · 305 ft

    Revenue —ADR $343Occ ≈ —4.3★ (14)

    AirbnbVrbo

  • Moonlight Getaway- great view, near pigeon forge

    4 bd · 3 ba · sleeps 10 · 305 ft

    Revenue —ADR $361Occ ≈ —4.2★ (20)

    AirbnbVrbo

  • Dolly's Lookout - Stunning Mt. Le Conte Views

    4 bd · 3 ba · sleeps 15 · 305 ft

    Revenue —ADR $369Occ ≈ —4.8★ (345)

    AirbnbVrbo

  • Dad's Cabin: Mountain Views+pets+Dollywood+Hot Tub

    4 bd · 3 ba · sleeps 9 · 312 ft

    Revenue —ADR $298Occ ≈ —4.8★ (135)

    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

$67,255

NOI

$34,423

Cash flow /mo

-$467

Cash needed

$208,510

Cash-on-cash

-2.7%

ROE (yr 1)

8.2%

Cap rate

5.6%

DSCR

0.86

Year-1 write-off

$139,047

Year-1 tax shield @ 32%

$44,495

Year-1 return on equity

  • Cash flow (annual)-$5,604
  • Principal paydown$4,051
  • Appreciation at%$18,570
ROE8.2%
ROE incl. year-1 tax savings (32% bracket, STR loophole)29.5%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$13,451
  • Platform fees (3% of revenue)$2,018
  • Maintenance / capex (5% of revenue)$3,363
  • Utilities & supplies$4,200
  • HOA$3,600
  • Property tax$2,487
  • Insurance (STR-rated)$3,714

Cash needed to close

  • Down payment (25%)$154,750
  • Closing costs (4.0%)$24,760
  • Furnishing (bought new)$29,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$44,495

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

$526,000

Short-life (5/15-yr)

$109,000 · 21%

Year-1 deduction

$139,000

Year-1 tax shield @ 32%

$44,000

Land 15% (market default, no usable tax-record split) · building $417,000 over 39 years · new furniture $29,000

Based on: 2,039 sq ft, built 2007, 4 bd / 3 ba, unfurnished, listing features (hot tub, deck, game room, fireplace).

IRS-guide safe-harbor floor: $93,000 in year 1 (12% short-life, $30,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$90,800

  • Kitchen cabinetsdefault

    $10,300 new × 40% good × 2.16 allocation

    $8,900

  • Kitchen countertopsdefault

    $8,400 new × 40% good × 2.16 allocation

    $7,300

  • Decorative trimdefault

    $3,600 new × 40% good × 2.16 allocation

    $3,100

  • Mirrorsdefault

    $500 new × 40% good × 2.16 allocation

    $400

  • Shelvingdefault

    $1,500 new × 40% good × 2.16 allocation

    $1,300

  • Window coverings (20)default

    $5,000 new × 40% good × 2.16 allocation

    $4,300

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

    $5,200 new × 40% good × 2.16 allocation

    $4,500

  • Kitchen & laundry equipment plumbingdefault

    $8,000 new × 62% good × 2.16 allocation

    $10,700

  • Kitchen, laundry & data equipment electricaldefault

    $4,800 new × 62% good × 2.16 allocation

    $6,500

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

    $8,100 new × 40% good × 2.16 allocation

    $7,000

  • Hot tub (freestanding)listing

    $9,000 new × 40% good × 2.16 allocation

    $7,800

  • Furniture bought newlisting

    $23,000 new × 100% good · bought separately

    $23,000

  • Game-room equipment bought newlisting

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

    $6,000
15-year land improvements$46,900

  • Paving: driveway & walks (paved)default

    $9,400 new × 50% good × 2.16 allocation

    $10,100

  • Landscaping (typical)default

    $9,000 new × 50% good × 2.16 allocation

    $9,700

  • Patiosdefault

    $2,000 new × 50% good × 2.16 allocation

    $2,200

  • Decks & porches (attached)listing

    $22,900 new × 50% good × 2.16 allocation

    $24,800
Building, 39-year$417,400

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

    $220,800 new × 68% good × 2.16 allocation

    $326,600

  • Building plumbing & fixturesdefault

    $22,900 new × 62% good × 2.16 allocation

    $30,800

  • Building electrical & lightingdefault

    $23,100 new × 62% good × 2.16 allocation

    $31,000

  • HVACdefault

    $23,000 new × 40% good × 2.16 allocation

    $19,900

  • Hardwood & tile floorsdefault

    $7,900 new × 40% good × 2.16 allocation

    $6,800

  • Fireplacelisting

    $2,600 new × 40% good × 2.16 allocation

    $2,300

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$90,800$46,900$1,300$139,000
2$0$0$10,700$10,700
3$0$0$10,700$10,700
4$0$0$10,700$10,700
5$0$0$10,700$10,700
6+$0$0$373,300$373,300
Total$90,800$46,900$417,400$555,100

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.