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Rate 8.15% = 7.40% Freddie Mac 30-yr avg (Oct 8) + 0.75% investor premium

905 Lacy Ct

905 Lacy Ct

Sevierville, TN 37862

$400,000

3 bd · 2.5 ba · 2,263 sqft · Listed 1d ago

View on Realtor.com →
Low confidenceEst. land %Negative cash flow

Year built

2026

Sqft

2,263

Lot sqft

—

HOA / mo

None

Furnished

No

List date

2026-10-10T01:56:24.000000Z

Revenue

Annual revenue

$23,281

ADR

$203

Occupancy

31%

Cleaning fees (12 mo)

$6,149

Confidence

Low (35.86), 5 comps

Comp revenue range (p25 / median / p75)

$6,542$25,053$26,765

Median revenue of shown comps: $25,053

  • 3BD|Sleeps 10|Near Dollywood|NEW

    Cabin · 3 bd · 1.5 ba · sleeps 8 · 138 ft

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +4

    Revenue $5,504ADR $268Occ ≈ 6%5★ (1)

    AirbnbVrboBooking

  • Modern 3BD | Close to Town | Game Room | Hot Tub

    Cabin · 3 bd · 2.5 ba · sleeps 8 · 148 ft

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +4

    Revenue $6,542ADR $233Occ ≈ 8%4.7★ (3)

    AirbnbVrboBooking

  • Modern 3BD Home Near TOWN! Hot Tub + Games + VIEWS

    House · 3 bd · 2.5 ba · sleeps 10 · 203 ft

    • Hot tub
    • A/C
    • Free parking
    • Wifi
    • +5

    Revenue $25,053ADR $237Occ ≈ 29%4.7★ (22)

    AirbnbVrbo

  • Private Getaway Near Pigeon Forge with a Pool!

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

    Revenue $32,129ADR $213Occ ≈ 41%4.8★ (64)

    Airbnb

  • Modern Mountain Home Near Dollywood | 3BR 2BA

    House · 3 bd · 2 ba · sleeps 8 · 0.5 mi

    • A/C
    • Free parking
    • Wifi
    • Kitchen
    • +1

    Revenue $26,765ADR $217Occ ≈ 34%4.8★ (12)

    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 8.15% = 7.40% Freddie Mac 30-yr avg (Oct 8) + 0.75% investor premium

Est. revenue

$23,281

NOI

$9,609

Cash flow /mo

-$1,432

Cash needed

$141,500

Cash-on-cash

-12.1%

ROE (yr 1)

-1.9%

Cap rate

2.4%

DSCR

0.36

Year-1 write-off

$113,087

Year-1 tax shield @ 32%

$36,188

Year-1 return on equity

  • Cash flow (annual)-$17,184
  • Principal paydown$2,432
  • Appreciation at%$12,000
ROE-1.9%

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)$4,656
  • Platform fees (3% of revenue)$698
  • Maintenance / capex (5% of revenue)$1,164
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$553
  • Insurance (STR-rated)$2,400

Cash needed to close

  • Down payment (25%)$100,000
  • Closing costs (4.0%)$16,000
  • Furnishing (bought new)$25,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$36,188

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

$340,000

Short-life (5/15-yr)

$87,000 · 26%

Year-1 deduction

$113,000

Year-1 tax shield @ 32%

$36,000

Land 15% (market default, no usable tax-record split) · building $253,000 over 39 years · new furniture $26,000

Based on: 2,263 sq ft, built 2026, 3 bd / 2.5 ba, unfurnished, listing features (deck, game room, flooring types, appliance list).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $74,000 in year 1 (14% short-life, $24,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$76,000

  • Kitchen cabinetsdefault

    $10,800 new × 100% good × 0.78 allocation

    $8,400

  • Kitchen countertopsdefault

    $8,800 new × 100% good × 0.78 allocation

    $6,900

  • Decorative trimdefault

    $4,000 new × 100% good × 0.78 allocation

    $3,100

  • Mirrorsdefault

    $300 new × 100% good × 0.78 allocation

    $200

  • Shelvingdefault

    $1,200 new × 100% good × 0.78 allocation

    $900

  • Window coverings (23)default

    $5,800 new × 100% good × 0.78 allocation

    $4,500

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

    $14,600 new × 100% good × 0.78 allocation

    $11,400

  • Kitchen & laundry equipment plumbingdefault

    $8,400 new × 100% good × 0.78 allocation

    $6,600

  • Kitchen, laundry & data equipment electricaldefault

    $5,100 new × 100% good × 0.78 allocation

    $4,000

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

    $5,700 new × 100% good × 0.78 allocation

    $4,500

  • 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$36,800

  • Paving: driveway & walks (paved)default

    $9,900 new × 100% good × 0.78 allocation

    $7,700

  • Landscaping (typical)default

    $9,500 new × 100% good × 0.78 allocation

    $7,400

  • Patiosdefault

    $2,200 new × 100% good × 0.78 allocation

    $1,700

  • Decks & porches (attached)listing

    $25,500 new × 100% good × 0.78 allocation

    $19,900
Building, 39-year$252,700

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

    $245,800 new × 100% good × 0.78 allocation

    $192,400

  • Building plumbing & fixturesdefault

    $25,500 new × 100% good × 0.78 allocation

    $20,000

  • Building electrical & lightingdefault

    $26,000 new × 100% good × 0.78 allocation

    $20,300

  • HVACdefault

    $25,500 new × 100% good × 0.78 allocation

    $20,000

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$76,000$36,800$300$113,100
2$0$0$6,500$6,500
3$0$0$6,500$6,500
4$0$0$6,500$6,500
5$0$0$6,500$6,500
6+$0$0$226,500$226,500
Total$76,000$36,800$252,700$365,500

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.