how much for store that needs all equip replaced?

[skyfather]

Found an existing mat where all the equipment needs to be replaced. Asking price is $320,000, which is over 5 times net. Excellent location with average demographics. Perfect candidate for a rehab.

Over 30% of the washers are out of order and over 16% of the dryer pockets. And the equipment that does work needs to be replaced soon. How much would you offer for a place like this considering that replacing all the machines will cost $223,000 installed? Also needs paint, new sink, and new folding cabinets. Haven't seen the water heater, but I'm sure that needs replacing too based on the condition of all the other items.

[Ken]

You are asking a question may not have right answer for it.
If you like the store,you can make it work,you will need to find a price buyer(you) and seller agree.I can tell you to give him a low offer,if he doesn't want to sell at that price,that will be no deal.
Some laundry owners never change machines or change every 20-30 years,some changed every 8-10 years so the machines maybe junky in your eyes but not the owner.
I saw stores asked $70,000,sold for $35000,store cost $300,000 to built sold for $45,000 8 years later,I also saw store sold for $10,000,resold for $75,000 after $15,000 rehab.

[pete f]

I agree sounds a bit high. How old is the equpiment? I have seen 3 yr old stores with many equipment out of order. If in fact the stuff is 20plus yrs, then you have to evaluate a remodel situation.

[skyfather]

I would guess the frontloaders and dryers are 10-15 years old and toploaders 9+.

Some of the working toploaders make loud noises. They are past useful life for sure and need to be replaced asap, with 25% out of order. The dryers have some life left. The frontloaders also have some life left, but almost 40% are out of order. I'm assuming the owner hasn't fixed them because they are beyond reasonable repairs. So if you're going to get 40% new frontloaders, might as well swap them all out.

After some thought, I would offer no more than 2-3 times net. But just saw that CAM is ridiculously high, so no go on this one. Thanks all.

[Silent Roo]

Understand the owner knows what his laundry is worth. LOWBALL the first offer. I have walked into similar situations and offered a number that made my wife blush only to find out I now owned it!