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Updated over 7 years ago on . Most recent reply
![Anthony Wienke's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/567318/1621492757-avatar-anthonyw54.jpg?twic=v1/output=image/cover=128x128&v=2)
Are these financials poor performing or am I missing something.
So im looking over the financials of a two for one commercial property purchase. One of the buildings is a small storage facility and the other is a self serve car wash. Both the storage facility and the car wash are right next to each other.
While looking over there previous financial documents, all im seeing are negatives when it comes to net income. Ill place some info below of the documents so someone else can decide for them selves.
Just want to know, are these profit and loss documents as bad as they look? Would this property just be a bottomless money pit in its current state? Just wondering if someone see's the diamond in the rough im not based on these financials.
Thanks BP Community
Profit and Loss | |
January - December 2016 | |
Total | |
Income | |
Car Wash Income | 1,681.75 |
Car Wash Cash Income | 769.00 |
Car Wash Credit Card Income | 5,114.60 |
Total Car Wash Income | $7,565.35 |
Sales of Product Income | 45,623.81 |
Services | 580.00 |
Storage Unit Monthly Rents | 3,550.00 |
Uncategorized Income | 1,620.00 |
Total Income | $58,939.16 |
Cost of Goods Sold | |
Supplies & Materials - COGS | 1,998.18 |
Total Cost of Goods Sold | $1,998.18 |
Gross Profit | $56,940.98 |
Expenses | |
Bank Charges | 1,350.78 |
Commissions & fees | 233.49 |
Disposal Fees | 777.96 |
Insurance | 1,716.81 |
Insurance - Liability | 2,317.96 |
Interest Expense | 8,301.77 |
Legal & Professional Fees | 99.90 |
Meals and Entertainment | 407.95 |
Postage And Delivery | 299.65 |
Refunds | 130.25 |
Rent or Lease | 12,227.25 |
Repair & Maintenance | 1,305.56 |
Supplies | 470.02 |
Taxes & Licenses | 3,997.52 |
Tools | 272.60 |
Travel | 0.00 |
Uncategorized Expense | 7,856.05 |
Utilities | 7,439.76 |
Total Expenses | $49,205.28 |
Net Operating Income | $7,735.70 |
Other Expenses | |
Depreciation | 27,928.00 |
Reconciliation Discrepancies | 0.01 |
Total Other Expenses | $27,928.01 |
Net Other Income | -$27,928.01 |
Net Income | -$20,192.31 |
Profit and Loss | |
January - December 2015 | |
Total | |
Income | |
Car Wash Income | 0.00 |
Car Wash Cash Income | 15,372.95 |
Car Wash Credit Card Income | 18,076.47 |
Total Car Wash Income | $33,449.42 |
Sales | 50.00 |
Sales of Product Income | 19,178.84 |
Services | 140.00 |
Storage Unit Monthly Rents | 6,750.49 |
Total Income | $59,568.75 |
Cost of Goods Sold | |
Supplies & Materials - COGS | 1,728.97 |
Total Cost of Goods Sold | $1,728.97 |
Gross Profit | $57,839.78 |
Expenses | |
Auto | 164.56 |
Bank Charges | 1,082.24 |
Bank Service Charges | 210.00 |
Commissions & fees | 120.00 |
Disposal Fees | 560.00 |
Dues & Subscriptions | 7.00 |
Insurance | 2,595.57 |
Interest Expense | 6,874.82 |
Job Materials | 51.87 |
Legal & Professional Fees | 922.50 |
Meals and Entertainment | 328.32 |
Office Expenses | 1,102.49 |
Other General and Admin Expenses | 188.06 |
Postage And Delivery | 96.20 |
Refunds | 204.34 |
Rent or Lease | 14,991.50 |
Repair & Maintenance | 6,441.66 |
Supplies | 690.66 |
Taxes & Licenses | 3,771.41 |
Tools | 378.90 |
Uncategorized Expense | 4,175.47 |
Utilities | 6,773.57 |
Total Expenses | $51,731.14 |
Net Operating Income | $6,108.64 |
Other Income | |
Other Ordinary Income | 1,025.20 |
Total Other Income | $1,025.20 |
Other Expenses | |
Depreciation | 17,196.00 |
Total Other Expenses | $17,196.00 |
Net Other Income | -$16,170.80 |
Net Income | -$10,062.16 |
Monday, Oct 16, 2017 07:31:51 AM GMT-7 - Accrual Basis |
Most Popular Reply
![Michael Le's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/373498/1621972237-avatar-michaelle.jpg?twic=v1/output=image/crop=368x368@2x0/cover=128x128&v=2)
The NOI is positive. The Net Income is negative because you're taking on depreciation loss but that's not really a loss in the sense that it's not money out of your pocket. It's there so you will have a net loss and pay no taxes.