Are these financials poor performing or am I missing something.

[Anthony Wienke]

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

[Michael Le]

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.