Question on Net cash flow, does expenses in financials include loan payment
When we see properties for example that has a revenue of $140k’ish, expenses of $40k’ish, and an NOI of roughly 100k’ish this still does not include the loan expense payments correct?

Meaning if I were to buy that property with lending I should not think of it as 100k cash flow but 100k minus my annual loan expense?
[{"id": "gub930w", "text": "If you're talking about free cash flow that flows to you, that is correct. You subtract debt service from NOI. One metric to size a loan is your coverage ratio which is NOI/debt service. Debt service is below NOI.", "replies": [], "depth": 1}, {"id": "gubd1nd", "text": "&gt;Meaning if I were to buy that property with lending I should not think of it as 100k cash flow but 100k minus my annual loan expense?\n\nCorrect, but instead of starting your cash flow with the full price, you would start with your down payment, thus the return in leveraging is usually higher.", "replies": [], "depth": 1}, {"id": "guc72wt", "text": "Correct, NOI is before debt service.\n\nDeduct your debt service and any additional \u201cbelow the line\u201d costs or reserves (e.g. capital reserves - you should ABSOLUTELY be setting aside money for future CAPEX) to get to net cash flow/free cash flow.", "replies": [], "depth": 1}, {"id": "gufl3bv", "text": "The loan payment is not included in the NOI figure, BUT the NEW taxes are. This is important to take into consideration in a State like CA where the current owner may be paying $15,000 a year and the new taxes are going to jump to $30,000 per year. I have noticed that many agents and many principals like to show their \"current\" taxes in the NOI calculation. In a State like CA, the current tax expense is irrelevant...you want to underwrite the project using the new tax basis based on the new acquisition price.", "replies": [], "depth": 1}]