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Rate 8.15% = 7.40% Freddie Mac 30-yr avg (Oct 15) + 0.75% investor premium

405 Solace Ct

405 Solace Ct

Sevierville, TN 37876

$293,623

4 bd · 2.5 ba · 1,554 sqft · Listed 1d ago

View on Realtor.com →
Est. land %Negative cash flow

Year built

—

Sqft

1,554

Lot sqft

—

HOA / mo

None

Furnished

No

List date

2026-10-21T00:07:11.000000Z

Revenue

Annual revenue

$35,917

ADR

$197

Occupancy

50%

Cleaning fees (12 mo)

$6,550

Confidence

Low (50.7), 9 comps

Comp revenue range (p25 / median / p75)

$17,932$33,194$37,605

Few similar-size comps were found, so all comps are shown.

Median revenue of shown comps: $33,194

  • Cozy cottage 5 acres with wooded views

    Cottage · 3 bd · 2 ba · sleeps 10 · 0.1 mi

    • Hot tub
    • A/C
    • Pets OK
    • Wifi
    • +4

    Revenue $37,605ADR $221Occ ≈ 47%4.8★ (183)

    Airbnb

  • Peaceful Hilltop Retreat

    House · 3 bd · 2 ba · sleeps 8 · 0.2 mi

    • A/C
    • Free parking
    • Pets OK
    • Wifi
    • +3

    Revenue $57,218ADR $202Occ ≈ 78%5★ (428)

    Airbnb

  • Mid-Century Vintage Brick Ranch Style Guesthouse

    House · 3 bd · 2 ba · sleeps 8 · 0.3 mi

    Revenue $14,978ADR $212Occ ≈ 19%3.1★ (77)

    AirbnbBooking

  • Hill Top: AMAZING views on a private 100 acres within city limits: EXCLUSIVE!

    Cabin · 4 bd · 3 ba · sleeps 14 · 0.3 mi

    Revenue $29,663ADR $442Occ ≈ 18%4.9★ (29)

    Vrbo

  • High Top Cabin in the Smokies w/ Mountain View!

    Cabin · 4 bd · 3 ba · sleeps 12 · 0.3 mi

    Revenue $13,161ADR $417Occ ≈ 9%4.7★ (18)

    AirbnbVrboBooking

  • Great Family Retreat Hot tub / near Dollywood

    House · 3 bd · 2 ba · sleeps 9 · 0.3 mi

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

    Revenue $35,017ADR $273Occ ≈ 35%4.8★ (65)

    AirbnbVrboBooking

  • 3 Bedroom Mid Century Brick Ranch Upstairs Home Near Smokies

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

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +4

    Revenue $17,932ADR $182Occ ≈ 27%2.9★ (6)

    Vrbo

  • Private Acreage | Mtn Views | Hot Tub | 3 Kings

    House · 3 bd · 2 ba · sleeps 12 · 0.4 mi

    • A/C
    • Free parking
    • Wifi
    • Kitchen
    • +2

    Revenue $33,194ADR $316Occ ≈ 29%5★ (2)

    AirbnbVrboBooking

  • Jason's Log Cabin Retreat w/ Hot tub & Views

    Cabin · 3 bd · 2 ba · sleeps 8 · 0.6 mi

    • Hot tub
    • A/C
    • Free parking
    • Pets OK
    • +5

    Revenue $55,659ADR $252Occ ≈ 61%4.8★ (180)

    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 15) + 0.75% investor premium

Est. revenue

$35,917

NOI

$18,107

Cash flow /mo

-$130

Cash needed

$108,151

Cash-on-cash

-1.4%

ROE (yr 1)

8.4%

Cap rate

6.2%

DSCR

0.92

Year-1 write-off

$85,161

Year-1 tax shield @ 32%

$27,252

Year-1 return on equity

  • Cash flow (annual)-$1,560
  • Principal paydown$1,786
  • Appreciation at%$8,809
ROE8.4%

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)$7,183
  • Platform fees (3% of revenue)$1,078
  • Maintenance / capex (5% of revenue)$1,796
  • Utilities & supplies$4,200
  • HOA$0
  • Property tax$1,791
  • Insurance (STR-rated)$1,762

Cash needed to close

  • Down payment (25%)$73,406
  • Closing costs (4.0%)$11,745
  • Furnishing (bought new)$23,000

Tax savings if the STR loophole applies

  • Tax shield @ 32%$27,252

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

$250,000

Short-life (5/15-yr)

$62,000 · 25%

Year-1 deduction

$85,000

Year-1 tax shield @ 32%

$27,000

Land 15% (market default, no usable tax-record split) · building $188,000 over 39 years · new furniture $23,000

Based on: 1,554 sq ft, age unknown, 4 bd / 2.5 ba, unfurnished, listing features (stone counters).

Try the cost segregation calculator on any property →

IRS-guide safe-harbor floor: $64,000 in year 1 (16% short-life, $21,000 tax shield), the conservative amount following the IRS audit guide's residential classification table.

5-year property$65,100

  • Kitchen cabinetsdefault

    $9,200 new × 40% good × 2.08 allocation

    $7,600

  • Kitchen countertops (stone)listing

    $9,400 new × 40% good × 2.08 allocation

    $7,800

  • Decorative trimdefault

    $2,700 new × 40% good × 2.08 allocation

    $2,300

  • Mirrorsdefault

    $300 new × 40% good × 2.08 allocation

    $200

  • Shelvingdefault

    $1,500 new × 40% good × 2.08 allocation

    $1,200

  • Window coverings (16)default

    $4,000 new × 40% good × 2.08 allocation

    $3,300

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

    $4,000 new × 40% good × 2.08 allocation

    $3,300

  • Kitchen & laundry equipment plumbingdefault

    $7,200 new × 40% good × 2.08 allocation

    $5,900

  • Kitchen, laundry & data equipment electricaldefault

    $4,300 new × 40% good × 2.08 allocation

    $3,600

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

    $8,100 new × 40% good × 2.08 allocation

    $6,700

  • Furniture bought newlisting

    $23,000 new × 100% good · bought separately

    $23,000
15-year land improvements$19,800

  • Paving: driveway & walks (paved)default

    $8,200 new × 50% good × 2.08 allocation

    $8,500

  • Landscaping (typical)default

    $7,900 new × 50% good × 2.08 allocation

    $8,200

  • Patiosdefault

    $1,500 new × 50% good × 2.08 allocation

    $1,600

  • Decks & porches (attached)default

    $1,500 new × 50% good × 2.08 allocation

    $1,600
Building, 39-year$187,600

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

    $168,000 new × 40% good × 2.08 allocation

    $139,500

  • Building plumbing & fixturesdefault

    $17,500 new × 40% good × 2.08 allocation

    $14,500

  • Building electrical & lightingdefault

    $17,000 new × 40% good × 2.08 allocation

    $14,100

  • HVACdefault

    $17,500 new × 40% good × 2.08 allocation

    $14,500

  • Hardwood & tile floorsdefault

    $6,000 new × 40% good × 2.08 allocation

    $5,000

About the property

Depreciation schedule: typical cost seg study

Year5-yr15-yrBuildingTotal
1$65,100$19,800$200$85,200
2$0$0$4,800$4,800
3$0$0$4,800$4,800
4$0$0$4,800$4,800
5$0$0$4,800$4,800
6+$0$0$168,200$168,200
Total$65,100$19,800$187,600$272,600

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.