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

2106 Vly Crk Way

2106 Vly Crk Way

Pigeon Forge, TN 37862

$975,000

4 bd · 4.5 ba · 2,586 sqft · Listed 5d ago

View on Realtor.com →
Est. land %

Year built

2026

Sqft

2,586

Lot sqft

871

HOA / mo

$317

Furnished

No

List date

2026-09-22T18:31:56Z

Revenue

Annual revenue

$107,567

ADR

$367

Occupancy

80%

Cleaning fees (12 mo)

$24,867

Confidence

High (70.92), 28 comps

Comp revenue range (p25 / median / p75)

$80,512$103,661$114,186

  • Indoor Pool Cabin, Theater, 7 mi to Dollywood

    4 bd · 4 ba · sleeps 12 · 69 ft

    Revenue —ADR $471Occ ≈ —4.8★ (65)

    AirbnbVrbo

  • Indoor Pool w/ Waterfall + Hot Tub & Games!

    4 bd · 5.5 ba · sleeps 12 · 69 ft

    Revenue —ADR $407Occ ≈ —4.7★ (32)

    AirbnbVrbo

  • Unique & Serene Haven: Indoor Pool, Hot Tub, Views

    4 bd · 5.5 ba · sleeps 14 · 135 ft

    Revenue —ADR $447Occ ≈ —4.8★ (84)

    AirbnbVrbo

  • Luxury Cabin w/ Indoor Pool, Hot Tub & Game Room

    4 bd · 4.5 ba · sleeps 10 · 157 ft

    Revenue —ADR $406Occ ≈ —4.8★ (78)

    AirbnbVrbo

  • *Amazing 4BD Lodge w/ Pool + Hot Tub! Near TOWN!*

    4 bd · 5.5 ba · sleeps 14 · 184 ft

    Revenue —ADR $532Occ ≈ —4.5★ (31)

    AirbnbVrbo

  • Luxe Cabin, Sleep 10・Indoor Pool・Home Theater・Deck

    4 bd · 4.5 ba · sleeps 10 · 243 ft

    Revenue —ADR $466Occ ≈ —4.5★ (22)

    AirbnbVrbo

  • Pool • Hot Tub • EV Charger

    4 bd · 5.5 ba · sleeps 16 · 259 ft

    Revenue —ADR $531Occ ≈ —4.2★ (4)

    Airbnb

  • Fall Safari Escape-HeatedPool-Arcades-Near Strip

    4 bd · 4.5 ba · sleeps 12 · 335 ft

    Revenue —ADR $549Occ ≈ —5★ (225)

    AirbnbVrbo

  • Indoor Pool | Hot Tub | Game Room | Near Dollywood

    4 bd · 4.5 ba · sleeps 10 · 335 ft

    Revenue —ADR $431Occ ≈ —5★ (89)

    AirbnbVrbo

  • Sleeps 14 - Indoor Pool, Hot Tub, EV Parking, Pets

    4 bd · 5.5 ba · sleeps 14 · 367 ft

    Revenue —ADR $604Occ ≈ —4.5★ (58)

    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

$107,567

NOI

$63,545

Cash flow /mo

$42

Cash needed

$311,750

Cash-on-cash

0.2%

ROE (yr 1)

11.6%

Cap rate

6.5%

DSCR

1.01

Year-1 write-off

$223,523

Year-1 tax shield @ 32%

$71,527

Year-1 return on equity

  • Cash flow (annual)$498
  • Principal paydown$6,380
  • Appreciation at%$29,250
ROE11.6%
ROE incl. year-1 tax savings (32% bracket, STR loophole)34.5%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$21,513
  • Platform fees (3% of revenue)$3,227
  • Maintenance / capex (5% of revenue)$5,378
  • Utilities & supplies$4,200
  • HOA$3,804
  • Property tax$49
  • Insurance (STR-rated)$5,850

Cash needed to close

  • Down payment (25%)$243,750
  • Closing costs (4.0%)$39,000
  • Furnishing (bought new)$29,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$71,527

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

$829,000

Short-life (5/15-yr)

$192,000 · 23%

Year-1 deduction

$224,000

Year-1 tax shield @ 32%

$72,000

Land 15% (market default, no usable tax-record split) · building $636,000 over 39 years · new furniture $29,000

Based on: 2,586 sq ft, built 2026, 4 bd / 4.5 ba, unfurnished, listing features (deck, game room, fireplace).

IRS-guide safe-harbor floor: $129,000 in year 1 (12% short-life, $41,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$134,200

  • Kitchen cabinetsdefault

    $11,500 new × 100% good × 1.67 allocation

    $19,100

  • Kitchen countertopsdefault

    $9,400 new × 100% good × 1.67 allocation

    $15,700

  • Decorative trimdefault

    $4,500 new × 100% good × 1.67 allocation

    $7,500

  • Mirrorsdefault

    $600 new × 100% good × 1.67 allocation

    $1,000

  • Shelvingdefault

    $1,500 new × 100% good × 1.67 allocation

    $2,500

  • Window coverings (26)default

    $6,500 new × 100% good × 1.67 allocation

    $10,800

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

    $6,700 new × 100% good × 1.67 allocation

    $11,100

  • Kitchen & laundry equipment plumbingdefault

    $8,900 new × 100% good × 1.67 allocation

    $14,900

  • Kitchen, laundry & data equipment electricaldefault

    $5,400 new × 100% good × 1.67 allocation

    $9,000

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

    $8,100 new × 100% good × 1.67 allocation

    $13,500

  • 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$87,300

  • Paving: driveway & walks (paved)default

    $10,500 new × 100% good × 1.67 allocation

    $17,600

  • Landscaping (typical)default

    $10,100 new × 100% good × 1.67 allocation

    $16,900

  • Patiosdefault

    $2,600 new × 100% good × 1.67 allocation

    $4,300

  • Decks & porches (attached)listing

    $29,100 new × 100% good × 1.67 allocation

    $48,500
Building, 39-year$636,300

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

    $280,500 new × 100% good × 1.67 allocation

    $467,900

  • Building plumbing & fixturesdefault

    $29,100 new × 100% good × 1.67 allocation

    $48,600

  • Building electrical & lightingdefault

    $30,100 new × 100% good × 1.67 allocation

    $50,100

  • HVACdefault

    $29,100 new × 100% good × 1.67 allocation

    $48,600

  • Hardwood & tile floorsdefault

    $10,000 new × 100% good × 1.67 allocation

    $16,700

  • Fireplacelisting

    $2,600 new × 100% good × 1.67 allocation

    $4,400

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$134,200$87,300$2,000$223,500
2$0$0$16,300$16,300
3$0$0$16,300$16,300
4$0$0$16,300$16,300
5$0$0$16,300$16,300
6+$0$0$569,000$569,000
Total$134,200$87,300$636,300$857,800

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.