Deal or No Deal?

[matman]

I am in the search mode for my first entry level mat. Here are the financials for a mat that I am currently looking at:

Asking price: $145,000
Sqare Feet: 1900
Equipment: 58 Units Total
20 -TL 5 years old
11 -30# FL 2 years old
3 -40# FL 10 years old
2 -50# FL 2 years old
22 -Stack Dryers 10 years old
Gross Receipts: $98,000

Annual Expenses: $62,000
Net Income: $36,000

Would this be a good first mat to own?
Comments are appreciated.

[WhatwasIThinkin]

how long is the lease?

[Coinwash]

Have you looked at this...?


Information for prospective Laundromat buyers.
Please click here... (http://coinwash.com/wp/?p=56)

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Remember read, read, and when you think you're finished read some more :)

[matman]

how long is the lease?

5 yr with 2 5yr options.

[Palmyra Jim]

With a 20 % down and a $116,000 loan, you will have a monthly loan payment around $1,900 or $22,800 per year. That is a significant chunk out of your net.

Would that work for your personal needs..
Jim

[fishmanz]

You would be buying yourself a low paying job with a net like that. The expense breakdown is what will be the deciding factor. You just have it as a line item.

[pete f]

To pull the trigger takes more info, my 5 important questions.
1. how far from your home ?
2. how much of your own, saved up cash are you commting to this ?
3. what is the rent?
4. wash dry fold involved?
5. attended or not?
6. bonus. handy with tools?

at this time posting I am the lone not enough information vote.

answer these questions and you are 6 steps closer to that million dollar prize.

[matman]

Pete f

Thanks for the questions.

1. 45 minutes
2. Putting down $35,000
3. Rent is $1100
4. No WDF
5. "Attended" just for cleaning.
6. Very handy with tools. Love tinkering with gadgets and taking on above average DIY projects.

Thanks

[ajay]

my initial thought is " no go", but looking at it again. you'll need to get more information on the expenses! utility bills will help. Looks like the owner is taking preety good care of the equipment and diligently been upgrading the equipment. I would also look at the 1 mile radius competition and see what they have, conditions, pricing, etc.. With that, you can make some assumptions - but do not pay on the assumptions.

Questions for those who said NO - what would the numbers need to show for you to say "yes" to(provided of course we can get more gross/expense information)?


I'm thinking If my investment gives me 25 - 30% or more return than I'm in good shape. Assuming it's all borrowed money. for every 100K, I pay 10% for interest, 15 or more to myself until paid off. then I get 25% minimum every year.

aj

[pete f]

The net does not make sense if the rent is $1100 and is unattended.
Your down payment will make it a long 5 years. And I assume the seller is holding the note, no bank will.