Vacation Rental: Schedule C vs Occupancy Rate

[Timothy Doenges]

Hello everyone! New REI here, and looking to get straight into a vacation rental property that my wife and I will maintain ourselves. However, something with the seller's Schedule C isn't lining up with my expectations.

I was told by the seller that they have maintained around 37% occupancy over the last 12 months, and I know the amount the seller has said that the cabins are rented for. However, when I do math for total rent per night * 365 * .37 to get an idea of gross rent for 1 year, I get a number around 3 times what was reported on Schedule C. 

Is this something to be worried about? or is my math flawed? I did some title searching as part of my due diligence, and didn't see any tax issues at all there, so I'm hoping that it may not be an issue.

Also, does anyone know if the Schedule C is used in appraisal of property value for commercial loans? I'm not sure if the seller would agree to sell below agreed purchase price if the appraisal came back much lower than their expectation, and I would hate for Schedule C to be a deal-breaker.

Thanks so much, and I greatly appreciate all the amazing information on here! Keep up the good work!

Tim Doenges