LP's, Something to look at in the monthly reports
As an LP, an important thing to look at on the monthly reports is the net income. I'm not just talking about the NOI, which is surely important. To assess the health of an investment, you should also consider the net income after the debt service.
To calculate this, subtract the mortgage payment from the NOI.
Observe how this trends over time. If there are significant negative amounts, it indicates that the property is bleeding cash. A small negative amount is acceptable, especially in the initial months of a value-add deal, and a good operator will have sufficient reserves for this period. However, if this negative trend persists, it can be a sign of trouble.
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Yup. Especially with all this floating rate debt coming due, its a good thing to make sure your not getting burned.