For a cashout refi - Are all LLC expenses included in P&L?

3 Replies

Hi all! I have a question about a P&L and a trailing 12 for an apartment building. 

I currently have a personal loan that I used for a down payment on an apartment building. The apartment building is in an LLC and is paying that personal loan payment every month out of that LLC's bank account.

The question is: when I go to a bank to refi the apartment building, do I need to include that monthly loan payment as a property expense? I'm assuming that the bank will want to see the business bank statements and will see that personal loan payments deducted every month, so should I be paying it out of my personal account instead?

Thoughts?

@Chad Duval , you should include it, but after your NOI. Your bank will be more interested in your current Income, Expenses, and NOI than CF.

Your  P&L should look something like this:

Total Income

- Total Operating Expenses

= NOI

- Mortagage (P&I)

= Cash Flow

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