Would you buy this?

[jarodj]

I'm looking at purchasing a local laundromat. The sale includes over 2500 sq ft building and 1 acre of land in mid ohio. It has 17 newer dexter washers and 18 dexter dryers. The business doesn't have any local competition within a 10-15 mile radius. The land/building itself is worth around $200k but they are asking over $400k for the business/land/building.

I've had a chance to look over the prelim books of the business. They gross $100k/year, they say their utils run around $33k year, yet on their tax return they only show a profit of $10k. Can numbers like this be true?

I've asked to see their water usage for the last 4 months so I can start a water eval.

I think there's a lot of room for improvement and possible additional cash at this location, but I wanted to get some of your feedback, or additional things I should be looking for.

Thanks in advance

[VicG]

Ask for the Water, gas, and electric bills for the last 12 months.

Do they have employees ?

Vic

[jarodj]

According to their records they have one part time employee whose salary was just under 10,000 last year.
I've asked to see their bills...but still waiting to see them.

[fishmanz]

I'm looking at purchasing a local laundromat. The sale includes over 2500 sq ft building and 1 acre of land in mid ohio. It has 17 newer dexter washers and 18 dexter dryers. The business doesn't have any local competition within a 10-15 mile radius. The land/building itself is worth around $200k but they are asking over $400k for the business/land/building.

I've had a chance to look over the prelim books of the business. They gross $100k/year, they say their utils run around $33k year, yet on their tax return they only show a profit of $10k. Can numbers like this be true?

I've asked to see their water usage for the last 4 months so I can start a water eval.

I think there's a lot of room for improvement and possible additional cash at this location, but I wanted to get some of your feedback, or additional things I should be looking for.

Thanks in advance


It sounds like a bad deal to me. The only money you will make is capitol gain on the real estate over a number of years. I'd keep looking or offer way less.