New or used

[davan]

I'm new to the site and very impressed with all the articles. I'm presently looking at a very old laundromat as a entry level into the business so some advice would be appreciated......

It's located in a city of 30K with two other mats (2000 sq ft and 1500sq ft)
Mat is 1000 sq ft with no lease (Can be negotiated with new landlord but rent has jumped recently from $8sf to $14sf + Triple net)
income has been declining even before rent increase.
Mat is unattended and located close to a new senior high school.
Income in 2004 36K gross $11.5K net
Projected income 2005 is 33K gross $4.5K net
18-15-20 year old Maytag TL
20- 20 year old maytag stacker dryers
1-20 year old 30lb wascotmat
1- 20 year old 30lb Huebsch Dryer
2 soap dispensers
no change machine as the store next door was doing it up until july

asking price $30k
I calculated using CLA method and came up with $15K value if a decent lease could be signed.

anyway, is ther potential with this mat? or start new?

Thanks

[anonymous]

Doesn't seem interesting to me. You should evaluate the competitors and determine if another 'mat is really needed in your town also.

[IPSOTECH]

Those stacks and TL are junk which is the reason for the declining revenue. The Wasco's are the only decent washers. I would say that 15 is even too much considering the amount of money you will have to spend to replace the equipment just to try and get people to come back. Personally I wouldn't give the present owner anything and just tell the landlord that if he boots the present owner you will take over the place. Purchase some decent new machines and you might have a chance. Its a gamble but if you do it right you might make out like a bandit.

[Anonymous]

I wouldn't touch this one period.

[IPSOTECH]

The triple net is what worries me though!!!

[pete f]

the mat may be a good remodel candidate, it would cost you 50k-80k to reproduce the infrastructures, so their is implied build out. Impact fees, location and demos would have to be looked into for further evaluations. I don't like the 14 sq ft plus cam lease either.
A nice re-do could double revenue easy if it has the need.

[davan]

Thanks for the input so far,

triple net charges are approx $3.80sf

nearest mat is 2km away

[mike]

Why are Canadians so afraid to identify their city, or at least province ?

be proud ! (unless of course, you're from Ontario, :-)

This mat is closing, before you buy it, or after, is up to you :-(