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

2540 White Timberlake Dr

Sevierville, TN 37876

$385,000

2 bd · 2.5 ba · 1,150 sqft · Listed 2d ago

View on Realtor.com →

Low confidenceNegative cash flow

Year built

2024

Sqft

1,150

Lot sqft

13,068

HOA / mo

None

Furnished

List date

2026-09-25T14:24:47Z

Revenue

Annual revenue

$32,093

ADR

$164

Occupancy

54%

Cleaning fees (12 mo)

$6,615

Confidence

Low (39.29), 13 comps

Comp revenue range (p25 / median / p75)

$15,127$27,677$31,415

A Little Slice of Smoky Mountain Magic - Hot Tub Included!
2 bd · 2.5 ba · sleeps 6 · 141 ft
Revenue —ADR $142Occ ≈ —4.8★ (10)
Vrbo
Comfortable Cabin | Near Douglas Lake
2 bd · 2 ba · sleeps 8 · 256 ft
Revenue —ADR $224Occ ≈ —4.6★ (15)
Airbnb Vrbo
"Relax II" 2 Bedroom Cabin
2 bd · 2.5 ba · sleeps 6 · 0.1 mi
Revenue —ADR $254Occ ≈ ——
Airbnb
Smokies Sanctuary | Hot Tub & Lake Views
2 bd · 2 ba · sleeps 6 · 0.2 mi
Revenue —ADR $210Occ ≈ —3.6★ (12)
Airbnb Vrbo
Smokies Sanctuary | Hot Tub | Fireplace | FirePit!
2 bd · 2 ba · sleeps 6 · 0.2 mi
Revenue —ADR $187Occ ≈ —5★ (1)
—
Recharge on a Lakefront Getaway on Lake Douglas.
2 bd · 2 ba · sleeps 6 · 0.2 mi
Revenue —ADR $156Occ ≈ —4.7★ (3)
Airbnb Vrbo
Relax II Cabin Rental
2 bd · 2.5 ba · sleeps 6 · 0.3 mi
Revenue —ADR $167Occ ≈ ——
Vrbo
Sevierville Cabin w/ Lake Views & Wraparound Porch
2 bd · 2.5 ba · sleeps 9 · 0.3 mi
Revenue —ADR $243Occ ≈ —4.5★ (45)
Airbnb Vrbo
Beautiful Lake Front Retreat, Sleeps 4・Dock・Games
2 bd · 2 ba · sleeps 4 · 0.4 mi
Revenue —ADR $145Occ ≈ —4.2★ (4)
Airbnb Vrbo
Smoky Mountain Lake Retreat, Deck, Games, Views
2 bd · 2 ba · sleeps 4 · 0.4 mi
Revenue —ADR $244Occ ≈ —4.7★ (17)
Airbnb Vrbo

Listing	Size	Revenue (12 mo)	ADR	Occ ≈	Rating	Distance	Links
A Little Slice of Smoky Mountain Magic - Hot Tub Included!	2 bd · 2.5 ba · sleeps 6	—	$142	—	4.8★ (10)	141 ft	Vrbo
Comfortable Cabin \| Near Douglas Lake	2 bd · 2 ba · sleeps 8	—	$224	—	4.6★ (15)	256 ft	Airbnb Vrbo
"Relax II" 2 Bedroom Cabin	2 bd · 2.5 ba · sleeps 6	—	$254	—	—	0.1 mi	Airbnb
Smokies Sanctuary \| Hot Tub & Lake Views	2 bd · 2 ba · sleeps 6	—	$210	—	3.6★ (12)	0.2 mi	Airbnb Vrbo
Smokies Sanctuary \| Hot Tub \| Fireplace \| FirePit!	2 bd · 2 ba · sleeps 6	—	$187	—	5★ (1)	0.2 mi	—
Recharge on a Lakefront Getaway on Lake Douglas.	2 bd · 2 ba · sleeps 6	—	$156	—	4.7★ (3)	0.2 mi	Airbnb Vrbo
Relax II Cabin Rental	2 bd · 2.5 ba · sleeps 6	—	$167	—	—	0.3 mi	Vrbo
Sevierville Cabin w/ Lake Views & Wraparound Porch	2 bd · 2.5 ba · sleeps 9	—	$243	—	4.5★ (45)	0.3 mi	Airbnb Vrbo
Beautiful Lake Front Retreat, Sleeps 4・Dock・Games	2 bd · 2 ba · sleeps 4	—	$145	—	4.2★ (4)	0.4 mi	Airbnb Vrbo
Smoky Mountain Lake Retreat, Deck, Games, Views	2 bd · 2 ba · sleeps 4	—	$244	—	4.7★ (17)	0.4 mi	Airbnb Vrbo

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

Purchase priceDown payment %30-yr rate %Already furnishedTax bracket

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

Est. revenue

$32,093

NOI

$15,022

Cash flow /mo

-$823

Cash needed

$127,650

Cash-on-cash

-7.7%

ROE (yr 1)

3.3%

Cap rate

3.9%

DSCR

0.60

Year-1 write-off

$120,810

Year-1 tax shield @ 32%

$38,659

Year-1 return on equity

Cash flow (annual)-$9,874
Principal paydown$2,519
Appreciation at%$11,550

ROE3.3%

ROE incl. year-1 tax savings (32% bracket, STR loophole)33.6%

Opex, cash-needed & tax-savings breakdown

Annual operating expenses

Management (20% of revenue)$6,419
Platform fees (3% of revenue)$963
Maintenance / capex (5% of revenue)$1,605
Utilities & supplies$4,200
HOA$0
Property tax$1,575
Insurance (STR-rated)$2,310

Cash needed to close

Down payment (25%)$96,250
Closing costs (4.0%)$15,400
Furnishing (bought new)$16,000

Tax savings if the STR loophole applies

Tax shield @ 32%$38,659

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

$366,000

Short-life (5/15-yr)

$104,000 · 28%

Year-1 deduction

$121,000

Year-1 tax shield @ 32%

$39,000

Land 5% (county tax record, market value split) · building $262,000 over 39 years · new furniture $16,000

Based on: 1,150 sq ft, built 2024, 2 bd / 2.5 ba, unfurnished, listing features (deck, flooring types, appliance list, wooded lot).

IRS-guide safe-harbor floor: $73,000 in year 1 (15% short-life, $23,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$82,500

Kitchen cabinetsdefault
$8,300 new × 92% good × 1.68 allocation
$12,900
Kitchen countertopsdefault
$6,800 new × 92% good × 1.68 allocation
$10,500
Decorative trimdefault
$2,000 new × 92% good × 1.68 allocation
$3,100
Mirrorsdefault
$300 new × 83% good × 1.68 allocation
$400
Shelvingdefault
$900 new × 92% good × 1.68 allocation
$1,400
Window coverings (12)default
$3,000 new × 80% good × 1.68 allocation
$4,000
Carpet, vinyl & laminate (100% of floors)listing
$7,400 new × 83% good × 1.68 allocation
$10,400
Kitchen & laundry equipment plumbingdefault
$6,500 new × 96% good × 1.68 allocation
$10,500
Kitchen, laundry & data equipment electricaldefault
$3,900 new × 96% good × 1.68 allocation
$6,300
Appliances (microwave, refrigerator, washer, dryer)listing
$4,900 new × 83% good × 1.68 allocation
$6,900
Furniture bought newlisting
$16,000 new × 100% good · bought separately
$16,000

15-year land improvements$37,500

Paving: driveway & walks (paved)default
$7,000 new × 92% good × 1.68 allocation
$10,900
Landscaping (minimal)listing
$3,400 new × 92% good × 1.68 allocation
$5,200
Patiosdefault
$1,100 new × 92% good × 1.68 allocation
$1,800
Decks & porches (attached)listing
$12,900 new × 90% good × 1.68 allocation
$19,600

Building, 39-year$262,200

Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$124,500 new × 97% good × 1.68 allocation
$202,600
Building plumbing & fixturesdefault
$12,900 new × 96% good × 1.68 allocation
$20,800
Building electrical & lightingdefault
$11,800 new × 96% good × 1.68 allocation
$19,200
HVACdefault
$13,000 new × 90% good × 1.68 allocation
$19,600

About the property

Sold furnishedGame roomHot tubPoolDeckDrivewayLandscapingFencedIrrigationLong-term rental (27.5-yr)Carpet / vinyl / laminate %Placed in serviceClosing costs $ (adds to basis)Land %Bonus depreciation %

Depreciation schedule: typical cost seg study

Year	5-yr	15-yr	Building	Total
1	$82,500	$37,500	$800	$120,800
2	$0	$0	$6,700	$6,700
3	$0	$0	$6,700	$6,700
4	$0	$0	$6,700	$6,700
5	$0	$0	$6,700	$6,700
6+	$0	$0	$234,500	$234,500
Total	$82,500	$37,500	$262,200	$382,200

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.