1003 Sierra Way
Sevierville, TN 37876
$475,000
2 bd · 2 ba · 1,120 sqft · Listed 4d ago
View on Realtor.com →Year built
2008
Sqft
1,120
Lot sqft
797,148
HOA / mo
None
Furnished
No
List date
2026-09-23T21:52:32Z
Revenue
Annual revenue
$34,058
ADR
$194
Occupancy
48%
Cleaning fees (12 mo)
$6,775
Confidence
Med (57.94), 13 comps
Comp revenue range (p25 / median / p75)
The Bears Den | Cabin w/ Hot Tub + Lake Access
2 bd · 1 ba · sleeps 4 · 0.3 mi
Revenue —ADR $202Occ ≈ —4.9★ (12)
| Listing | Size | Revenue (12 mo) | ADR | Occ ≈ | Rating | Distance | Links |
|---|---|---|---|---|---|---|---|
Douglas Lake Front Cabin Retreat | 2 bd · 1 ba · sleeps 4 | — | $181 | — | 4.7★ (160) | 515 ft | AirbnbVrbo |
Tennessee Whiskey Cabin- Lake and Mtn Views- Pets | 2 bd · 1 ba · sleeps 6 | — | $255 | — | 4.9★ (37) | 0.2 mi | AirbnbVrbo |
The Lakehouse | 2 bd · 2 ba · sleeps 4 | — | $199 | — | 4.8★ (172) | 0.2 mi | AirbnbVrbo |
2 Bed 3 Bath Barndominium | Hot Tub + Lake Access | 2 bd · 2.5 ba · sleeps 8 | — | $249 | — | 5★ (8) | 0.3 mi | AirbnbVrbo |
The Bears Den | Cabin w/ Hot Tub + Lake Access | 2 bd · 1 ba · sleeps 4 | — | $202 | — | 4.9★ (12) | 0.3 mi | Airbnb |
The Bears Den at Smoky Mountains | 2 bd · 1 ba · sleeps 4 | — | $157 | — | — | 0.3 mi | Airbnb |
Deer Crossing at Smoky Mountains | 2 bd · 1.5 ba · sleeps 4 | — | $298 | — | — | 0.3 mi | AirbnbVrbo |
Deer Crossing | Hot Tub + Douglas Lake Access | 2 bd · 1 ba · sleeps 4 | — | $191 | — | 5★ (15) | 0.3 mi | AirbnbVrbo |
Grandview Lodge • Lakeview Cabin w/ Hot Tub | 2 bd · 3 ba · sleeps 6 | — | $270 | — | 5★ (21) | 0.4 mi | AirbnbVrbo |
2BR Log Cabin, Sleeps 6, Game Room, Douglas Lake | 2 bd · 1.5 ba · sleeps 6 | — | $198 | — | 4★ (2) | 0.7 mi | 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
Rate 7.78% = 7.03% Freddie Mac 30-yr avg (Sep 24) + 0.75% investor premium
Est. revenue
$34,058
NOI
$13,482
Cash flow /mo
-$1,436
Cash needed
$153,750
Cash-on-cash
-11.2%
ROE (yr 1)
0.1%
Cap rate
2.8%
DSCR
0.44
Year-1 write-off
$95,012
Year-1 tax shield @ 32%
$30,404
Year-1 return on equity
- Cash flow (annual)-$17,234
- Principal paydown$3,108
- Appreciation at%$14,250
Opex, cash-needed & tax-savings breakdown
Annual operating expenses
- Management (20% of revenue)$6,812
- Platform fees (3% of revenue)$1,022
- Maintenance / capex (5% of revenue)$1,703
- Utilities & supplies$4,200
- HOA$0
- Property tax$3,848
- Insurance (STR-rated)$2,992
Cash needed to close
- Down payment (25%)$118,750
- Closing costs (4.0%)$19,000
- Furnishing (bought new)$16,000
Tax savings if the STR loophole applies
- Tax shield @ 32%$30,404
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
$404,000
Short-life (5/15-yr)
$78,000 · 19%
Year-1 deduction
$95,000
Year-1 tax shield @ 32%
$30,000
Land 15% (market default, no usable tax-record split) · building $326,000 over 39 years · new furniture $16,000
Based on: 1,120 sq ft, built 2008, 2 bd / 2 ba, unfurnished, listing features (wooded lot).
IRS-guide safe-harbor floor: $71,000 in year 1 (13% short-life, $23,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.
- $10,100
Kitchen cabinetsdefault
$8,300 new × 40% good × 3.05 allocation
- $8,200
Kitchen countertopsdefault
$6,800 new × 40% good × 3.05 allocation
- $2,400
Decorative trimdefault
$2,000 new × 40% good × 3.05 allocation
- $400
Mirrorsdefault
$300 new × 40% good × 3.05 allocation
- $1,100
Shelvingdefault
$900 new × 40% good × 3.05 allocation
- $3,400
Window coverings (11)default
$2,800 new × 40% good × 3.05 allocation
- $3,500
Carpet, vinyl & laminate (40% of floors)default
$2,900 new × 40% good × 3.05 allocation
- $12,500
Kitchen & laundry equipment plumbingdefault
$6,400 new × 64% good × 3.05 allocation
- $7,600
Kitchen, laundry & data equipment electricaldefault
$3,900 new × 64% good × 3.05 allocation
- $9,900
Appliances (range, microwave, dishwasher, disposal, refrigerator, washer, dryer)default
$8,100 new × 40% good × 3.05 allocation
- $16,000
Furniture bought newlisting
$16,000 new × 100% good · bought separately
- $10,600
Paving: driveway & walks (paved)default
$6,900 new × 50% good × 3.05 allocation
- $5,100
Landscaping (minimal)listing
$3,300 new × 50% good × 3.05 allocation
- $1,700
Patiosdefault
$1,100 new × 50% good × 3.05 allocation
- $1,700
Decks & porches (attached)default
$1,100 new × 50% good × 3.05 allocation
- $258,300
Structure: foundation, framing, walls, windows, doors, roof, interior finishesdefault
$121,200 new × 70% good × 3.05 allocation
- $24,500
Building plumbing & fixturesdefault
$12,500 new × 64% good × 3.05 allocation
- $22,400
Building electrical & lightingdefault
$11,500 new × 64% good × 3.05 allocation
- $15,400
HVACdefault
$12,600 new × 40% good × 3.05 allocation
- $5,300
Hardwood & tile floorsdefault
$4,300 new × 40% good × 3.05 allocation
About the property
Depreciation schedule: typical cost seg study
| Year | 5-yr | 15-yr | Building | Total |
|---|---|---|---|---|
| 1 | $75,000 | $19,000 | $1,000 | $95,000 |
| 2 | $0 | $0 | $8,400 | $8,400 |
| 3 | $0 | $0 | $8,400 | $8,400 |
| 4 | $0 | $0 | $8,400 | $8,400 |
| 5 | $0 | $0 | $8,400 | $8,400 |
| 6+ | $0 | $0 | $291,300 | $291,300 |
| Total | $75,000 | $19,000 | $325,800 | $419,700 |
The building's share of the price ($404,000) is 3.0x our depreciated replacement cost of the home ($133,000). The IRS guide treats a gap this size as a reason to review the land share: if land is worth more than the county ratio says, the basis and the write-off are smaller.
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.