Case Study · Mountain cabin

A four-bedroom Smokies cabin at $775,000

$775,000Purchase price
$138,942Total entry
$14,864Annual cash flow
5.93%Cash-on-cash
$77,500Year-one tax reduction

A four-bedroom in the Smokies at $775,000, entering the highest-demand bedroom count in the country's highest-volume STR market at a below-average basis.

4BR cabin Sevierville, Tennessee
Purchase price$775,000
Bedrooms4
MarketSmoky Mountains

The deal numbers

Straight from the client deal tracker: what it cost to get in, and what it returns.

  • Purchase price$775,000
  • Down payment$77,500
  • Closing costs$9,875
  • Design and furnishing$51,567
  • Total entry cost$138,942
  • Annual cash flow$14,864
  • Cash-on-cash return5.93%

The tax position

  • Purchase price$775,000
  • Typical cost seg reclassification25% of price
  • Illustrative year-one deduction$193,750
  • Illustrative tax reduction at 40%$77,500

An illustration, not this client's return: 25% of price reclassified at a 40% marginal rate, the same assumptions as our calculator. Your number depends on your study, your rate, and meeting the seven day and material participation tests. We are not a CPA firm.

The full story

Adam's purchase is the clearest illustration of what the acquisition side of this business actually does. A four-bedroom cabin in Sevierville at $775,000 is below where comparable four-bedroom inventory in the corridor typically transacts, and every dollar below the market basis is a permanent improvement to the return.

That matters more than most first-time buyers expect. Revenue optimization is real but bounded: better photography, better pricing and better amenities might move gross revenue 10 to 20% against a poorly run comparable. Buying $50,000 or $80,000 under market is locked in at closing, it never has to be re-earned, and it improves both the cash-on-cash return and the equity position simultaneously.

We screen roughly a thousand deals a week and eliminate about 98% of them. That ratio exists because the properties worth buying are a small fraction of the properties for sale, and because the difference between the two is almost never visible from the listing photos. It is visible in the comparable booking data, the amenity gap, the deferred maintenance, and what the seller will actually accept.

Sevierville remains our most-transacted market for a reason. The demand base is the largest in the country, the inventory is deep enough that there is always something mispriced, and Tennessee's lack of a wage income tax removes a layer of state-level complexity for high-earning buyers.

Questions about this deal

What did Adam's Sevierville cabin cost?

A four-bedroom cabin purchased for $775,000 in Sevierville, Tennessee.

Why does purchase price matter more than revenue optimization?

Optimization is bounded, perhaps 10 to 20% of gross revenue against a poorly run comparable. Buying under market is locked in at closing, never has to be re-earned, and improves both cash-on-cash return and equity position at once.

How many deals does BNB Accelerator review?

Roughly a thousand a week, with about 98% eliminated. The properties worth buying are a small fraction of those for sale, and the difference is rarely visible in listing photos.

Want numbers like these on your own deal?

One call. We will tell you what your income, timeline and tax position can actually buy.

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