evaluating by the mthly gas & elec bills

[george]

I am evaluating a mat for sale. The water bill is devided by all the tenants in the strip mall. Of course the mat pays the most.

I want to evaluate by the monthly gas & electric bills.

Can anyone help me out with the formulas?

I am going thru a well known laundry mat broker/distributer who says he has the spread sheet formulas to see if the numbers add up.

But I would like to check myself.

Thanks for any info,
newbie

[Kitty]

George,

I will assume the seller gives you the annual and monthly revenue and expenes listed by line item correct? What have you got?

The water usage will allow you to determine the accuaracy of the number that he has given you in the revenue statements, thus since the water usuage is bundled with the other tenants the water (so to speak) is muddied up a bit, however I suggest you also get the gas readings as well and someone (other than me) may be able to determine a number for you based on the machines? But in the meantime...

Why don't you list the equipment, equipment sizes, equipment vend prices and give a list of the other tenants as well to understand what you are up against andmaybe we may offer some type of assistance.

Kitty

[fluffy]

I'd say using the electric bill isn't going to work -- too many extraneous variables (type of lighting, whether you have A/C, etc.). The gas bill is also more difficult than water analysis, and as Kitty mentioned it depends upon your dryer pricing (minutes per quarter) and also upon the hot water heater efficiencies. My personal experience has my gross dryer income at 3-3.5 times my total gas bill, and then you can use the ratio of dyer to washer income of 30-40% to get what washer gross income should be (there is a poll about this on the main board).

[Coinwash]

Search engine
"gross dryer income" & "washer gross income "
;)
http://www.coinwash.com/mb/showthread.php?t=5484

[george]

Thanks guys....
the exsisting mat is 1320 sq ft.
has 14 top loaders @ $1.50 ea, 2 18 lbs's @ $1.75, 9 25 lbs @ $2.75, 2 35 lb's @ $3.75 ea.
10 stack dexter dryers has coffee & soda vending. All machines about 10 yrs old.
States 11K gross & 4,400.00 net p/mth. (10,600.00 wash income, 400.00 vend income)
rent $1520.00, sewer/water $ 1365.00, gas 1241.00 p/mth Asking 250K
ins 89.00, p.p tax 50.00, cam 330, vend exp 150.00, parts 300.00, attendant 1k, misc 100, alarm 40, dish tv 40.00. Little competition.
I plan on putting 50% down.

does this look in line? I am in S. cal so everything in the biz or real estate is higher out here. I have asked to review all the monthly expenses & all utility bills.
thanks for any help.
George