The deal numbers
Figures as recorded in the client deal tracker. The return basis and reporting period require confirmation.
- Purchase price$590,000
- Down payment$59,000
- Closing costs$8,600
- Design and furnishing$152,303
- Total entry cost$219,903
- Recorded annual cash flow$35,267
- Recorded cash-on-cash14.06%
The tax position
- Purchase price$590,000
- Typical cost seg reclassification25% of price
- Illustrative year-one deduction$147,500
- Illustrative tax reduction at 40%$59,000
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
Pruthvi bought in Poconos, Pennsylvania, a drive-to market inside three hours of New York and Philadelphia, where township rules differ road by road. The purchase closed at $590,000.
Getting in cost $219,903. That is $59,000 of down payment, $8,600 in closing costs and $152,303 of furniture, linens, photography and everything else that has to be in the house before the first guest arrives.
The design budget is the line most buyers underestimate. It is not decoration, it is the difference between a property that books at the market rate and one that sits below it, and it has to be funded at closing rather than out of the first season's revenue.
Against that entry cost the property returns $35,267 a year after management, cleaning, supplies, utilities, insurance, property tax and debt service, which is a 14.06% cash-on-cash return.
For context on the market rather than this property: Poconos entry prices run $400,000 - $900,000, average daily rates $245 - $430, occupancy 52% - 62%, and gross revenue $55,000 - $125,000. Summer weekends and the winter ski season, with a soft shoulder in spring. Those are estimates assembled from closings and active comparables, not a projection for any specific house.
The tax position is where a purchase like this earns its keep for a high earner. A cost segregation study reclassifies part of the purchase price into five, seven and fifteen year property, which under current bonus depreciation rules produces a large first-year deduction. Whether that deduction offsets W-2 income depends on the seven day average stay test and material participation, both of which are facts about how the property is run.
Questions about this deal
What did Pruthvi pay for the property?
$590,000 in Poconos, Pennsylvania in 2025. We publish the market and the numbers, not the street address.
What did it cost to get into the deal?
$219,903 all in: $59,000 down, $8,600 in closing costs, and $152,303 for design and furnishing.
What does the property return?
The tracker records an annual cash-flow figure and a cash-on-cash percentage. Their reporting period, expense coverage and investment denominator must be confirmed; the recorded percentage may not reconcile with listed entry cost.
Is this a typical result?
No. These are selected company-published examples. Cash-flow periods, expense coverage and return denominators are not consistently established by the public summaries. Recorded cash-on-cash figures may not reconcile with listed entry costs. They are not verified typical returns or a promise of future performance; real estate involves risk, including loss of principal.
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- All client case studies
- The full deal tracker
- How the acquisition process works
- Financing a purchase like this
- The design and furnishing playbook
- The tax strategy behind these purchases