Do you consider mortgage payments an expense?

[Wendy Schultz]

I've debating in my mind if I should consider the mortgage payment in my expenses when determining profitability. Only the interest is truly an expense but a mortgage payment certainly impacts cash flow. How do you determine profitability? Or do you just consider cash flow? 

[Paul Ewing]

As you said, only the interest is an expense for tax purposes.  Sort of like vacancy and maintenance reserves are not counted as true expenses but come into play when figuring cash flow.  Personally I am more cash flow focused, but will let my cash flow number drop lower than most because I usually buy my properties using short 3-5 year personal loans so the mortgage payment is often 50% of rent but it is over quickly.