How to review a P&L

[Yoav Schatzberg]

Hi all,

I'm reviewing a P&L for a 7 unit building, and I've got a couple of (basic) questions:

1. What am I looking for in here? Other than actual NOI and Expenses, what should I be considering?

2. Are there any other documents I should ask for?

[Simon W.]

Quote from @Yoav Schatzberg:

Hi all,

I'm reviewing a P&L for a 7 unit building, and I've got a couple of (basic) questions:

1. What am I looking for in here? Other than actual NOI and Expenses, what should I be considering?

2. Are there any other documents I should ask for?

 If you are asking what you are looking for, you either need to learn some accounting 101 or hire someone to layout for you. There are too many variables here.

I look at P&L and balance sheet and the total package of the deal. I analyze these for my clients to see if make sense to even buy or what to offer for it.

P&L is just that, profit and loss. not much else to look for but more like question the line items.

What is the period of the P&L? Is it accrual basis or cash basis?