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

113 Downy Rd

113 Downy Rd

Blue Ridge, GA 30513

$1,190,000

3 bd · 2 ba · 2,262 sqft · Listed 22d ago

View on Realtor.com →
Negative cash flow

Year built

2023

Sqft

2,262

Lot sqft

48,352

HOA / mo

$42

Furnished

No

List date

2026-09-05T17:02:46.000000Z

Revenue

Annual revenue

$37,720

ADR

$246

Occupancy

42%

Cleaning fees (12 mo)

$8,554

Confidence

Low (50.52), 9 comps

Comp revenue range (p25 / median / p75)

$17,917$36,300$48,054

  • Log Cabin on the Toccoa River Northeast Georgia Mountains

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.4 mi

    Revenue $30,845ADR $166Occ ≈ 51%4.9★ (277)

    Vrbo

  • Blue Ridge - Creek Front Paradise w/great outdoors

    Cabin · 3 bd · 2 ba · sleeps 6 · 0.6 mi

    Revenue $50,920ADR $319Occ ≈ 44%5★ (190)

    AirbnbVrbo

  • The Stargazer *Hot Tub*Firepit*Views*Toccoa River*

    Cabin · 3 bd · 2 ba · sleeps 5 · 0.6 mi

    Revenue $36,300ADR $248Occ ≈ 40%5★ (99)

    Airbnb

  • Cozy Connect - View, hot tub, game room, fire pit

    Cabin · 3 bd · 3 ba · sleeps 6 · 0.6 mi

    Revenue $17,917ADR $270Occ ≈ 18%5★ (6)

    AirbnbVrbo

  • Luxury Cabin w/ views•Toccoa• HotTub•Firept•Pets

    Cabin · 3 bd · 2 ba · sleeps 5 · 0.7 mi

    Revenue $41,506ADR $256Occ ≈ 44%4.9★ (23)

    AirbnbVrboBooking

  • Charming Creekside Cabin - Whitetail Run!

    Cabin · 3 bd · 3 ba · sleeps 10 · 0.7 mi

    Revenue $11,283ADR $375Occ ≈ 8%4.9★ (21)

    AirbnbVrboBooking

  • Modern + moody/master suite/Aska Adventure

    Cabin · 3 bd · 2 ba · sleeps 6 · 0.7 mi

    Revenue $14,972ADR $373Occ ≈ 11%5★ (6)

    AirbnbVrbo

  • Whimsical Ways - Hot tub-screen porch-pet friendly

    Cabin · 3 bd · 2.5 ba · sleeps 7 · 0.7 mi

    Revenue $59,599ADR $284Occ ≈ 57%5★ (31)

    AirbnbVrbo

  • Higher Hopes - pets, hot tub, games, fire pit

    Cabin · 3 bd · 2.5 ba · sleeps 8 · 0.7 mi

    Revenue $48,054ADR $256Occ ≈ 51%5★ (32)

    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

$37,720

NOI

$6,181

Cash flow /mo

-$5,897

Cash needed

$370,600

Cash-on-cash

-19.1%

ROE (yr 1)

-7.4%

Cap rate

0.5%

DSCR

0.08

Year-1 write-off

$272,633

Year-1 tax shield @ 32%

$87,243

Year-1 return on equity

  • Cash flow (annual)-$70,769
  • Principal paydown$7,787
  • Appreciation at%$35,700
ROE-7.4%
ROE incl. year-1 tax savings (32% bracket, STR loophole)16.2%
Opex, cash-needed & tax-savings breakdown

Annual operating expenses

  • Management (20% of revenue)$7,544
  • Platform fees (3% of revenue)$1,132
  • Maintenance / capex (5% of revenue)$1,886
  • Utilities & supplies$4,200
  • HOA$504
  • Property tax$3,600
  • Insurance (STR-rated)$12,674

Cash needed to close

  • Down payment (25%)$297,500
  • Closing costs (4.0%)$47,600
  • Furnishing (bought new)$25,500

Tax savings if the STR loophole applies

  • Tax shield @ 32%$87,243

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

$1,072,000

Short-life (5/15-yr)

$244,000 · 23%

Year-1 deduction

$273,000

Year-1 tax shield @ 32%

$87,000

Land 10% (county tax record, market value split) · building $827,000 over 39 years · new furniture $26,000

Based on: 2,262 sq ft, built 2023, 3 bd / 2 ba, unfurnished, listing features (deck, fence, game room, fireplace, stone counters, appliance list, septic).

IRS-guide safe-harbor floor: $158,000 in year 1 (12% short-life, $50,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$154,100

  • Kitchen cabinetsdefault

    $10,800 new × 88% good × 2.54 allocation

    $24,000

  • Kitchen countertops (stone)listing

    $11,000 new × 88% good × 2.54 allocation

    $24,500

  • Decorative trimdefault

    $4,000 new × 88% good × 2.54 allocation

    $8,800

  • Mirrorsdefault

    $300 new × 75% good × 2.54 allocation

    $600

  • Shelvingdefault

    $1,200 new × 88% good × 2.54 allocation

    $2,700

  • Window coverings (23)default

    $5,800 new × 70% good × 2.54 allocation

    $10,200

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

    $5,800 new × 75% good × 2.54 allocation

    $11,100

  • Kitchen & laundry equipment plumbingdefault

    $8,400 new × 94% good × 2.54 allocation

    $19,900

  • Kitchen, laundry & data equipment electricaldefault

    $5,100 new × 94% good × 2.54 allocation

    $12,100

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

    $7,700 new × 75% good × 2.54 allocation

    $14,600

  • 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$115,900

  • Paving: driveway & walks (paved)default

    $9,900 new × 88% good × 2.54 allocation

    $22,000

  • Landscaping (typical)default

    $9,500 new × 88% good × 2.54 allocation

    $21,200

  • Patiosdefault

    $2,200 new × 88% good × 2.54 allocation

    $5,000

  • Decks & porches (attached)listing

    $25,400 new × 85% good × 2.54 allocation

    $54,800

  • Fencinglisting

    $6,000 new × 85% good × 2.54 allocation

    $12,900
Building, 39-year$827,200

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

    $245,700 new × 95% good × 2.54 allocation

    $591,700

  • Building plumbing & fixturesdefault

    $25,500 new × 94% good × 2.54 allocation

    $60,700

  • Building electrical & lightingdefault

    $25,900 new × 94% good × 2.54 allocation

    $61,800

  • HVACdefault

    $25,500 new × 85% good × 2.54 allocation

    $54,900

  • Hardwood & tile floorsdefault

    $8,700 new × 88% good × 2.54 allocation

    $19,500

  • Fireplaces (2)listing

    $5,300 new × 88% good × 2.54 allocation

    $11,700

  • Septic systemlisting

    $12,000 new × 88% good × 2.54 allocation

    $26,800

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$154,100$115,900$2,700$272,600
2$0$0$21,200$21,200
3$0$0$21,200$21,200
4$0$0$21,200$21,200
5$0$0$21,200$21,200
6+$0$0$739,700$739,700
Total$154,100$115,900$827,200$1,097,200

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

Fannin and Gilmer counties require STR registration and lodging tax; no cap found. Blue Ridge and Ellijay city limits have their own rules; most cabins are in unincorporated county.