economycar
01-17-2008, 04:12 AM
Hi, I have been interested in getting a laundromat for a long time and I would like to get some input on a particular one that I have been looking at:
- 14 washers, 12 dryers, 1 soap machine all fairly recent and in good condition
- rent: $700 /m (10 years left on lease)
- water: $300 /m
- electric: $300 /m
- gas: $650 /m
- insurance: $75 /m
The owner allegedly grossed around $6k/month at one point but supposedly lost interest due to other businesses (supermarket in a different neighborhood) and family problems (divorce/foreclosure) and now it does ~$4.5k/month. There is a lot of room for improvement although it is in good condition, lights need to be replaced, there is no tv, there is no seating, I would like to put in an atm and other things. The owner is looking to get 40-50k as he is in a rough situation. Now the part that is a tough call is based on the fact that there are at least two other bigger/"nicer" laundromats in a 3 block radius . The other problem is that it borders a cemetery so that radius is cut in half.
On the other hand, this is an extremely population dense, lower income area (~60k people per square mile). Do these number sound right for this sized laundromat? The income includes drop off . I am going to assume that my expenses will be around $2500 a month and I personally want to net a minimum of $2000 a month to even bother with it. Am I foolish to think that I can walk away with at least $2k/m and how much time on average do you think would need to be devoted to a place of that size?
Sorry for the long question and thanks for any response.
Mike
- 14 washers, 12 dryers, 1 soap machine all fairly recent and in good condition
- rent: $700 /m (10 years left on lease)
- water: $300 /m
- electric: $300 /m
- gas: $650 /m
- insurance: $75 /m
The owner allegedly grossed around $6k/month at one point but supposedly lost interest due to other businesses (supermarket in a different neighborhood) and family problems (divorce/foreclosure) and now it does ~$4.5k/month. There is a lot of room for improvement although it is in good condition, lights need to be replaced, there is no tv, there is no seating, I would like to put in an atm and other things. The owner is looking to get 40-50k as he is in a rough situation. Now the part that is a tough call is based on the fact that there are at least two other bigger/"nicer" laundromats in a 3 block radius . The other problem is that it borders a cemetery so that radius is cut in half.
On the other hand, this is an extremely population dense, lower income area (~60k people per square mile). Do these number sound right for this sized laundromat? The income includes drop off . I am going to assume that my expenses will be around $2500 a month and I personally want to net a minimum of $2000 a month to even bother with it. Am I foolish to think that I can walk away with at least $2k/m and how much time on average do you think would need to be devoted to a place of that size?
Sorry for the long question and thanks for any response.
Mike