Should I Buy this Laundromat?

1. Laundromat is listed for $224,000/-

2. Equipment includes 17 washers and 16 dryers with the breakdown as follows:

a) 9 Maytag double loaders (20lbs) out of which 2 are broken and are for parts only. When I look at the coin receptacles on all the machines, I actually count 4 on which the receptacles are blocked indicating they’re currently out of order.
b) 3 Dexter Triple Loaders (30lbs) all in working order.
c) 3 Dexter Maxi Loaders (40lbs) all in working order.
d) 1 Dexter 6 Loader (60lbs) in working order.
e) 1 Huebsch 6 Loader (60lbs) in working order.
f) 16 Wascomat 30×30 (30lbs) dryers of which 2 had blocked coin receptacles indicating there’s something wrong with them.


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3. In addition to the above, the store has 2 folding tables, a drop-off box for wash/fold, and a shuttered back areas which I’m guessing is the office space.

4. There are 2 vending machines that dispense laundry detergent out of one and snacks out of the other.

5. There is also an ATM machine as well as a coin dispenser that accepts bills for the washers/dryers.

6. The submitted financials by the owner are in the form of monthly revenue without any details of month-to-month activity and nor is the information indicative of whether these are pre, during, or post-COVID:

a) $7000/month revenue from washers/dryers
b) $1000/month revenue from wash/fold
c) $150/month venue from snack vending machine
d) $150/month from the ATM machine
e) $200/month from the detergent vending machine
f) TOTAL = $8500/month in revenue
g) $4520/month in expenses made up of the lease at $2000/month, water at $600/month, heat at $600/month, electricity at $300/month, and the remaining $850/month from expenses such as internet, security cameras, etc.

Based on the numbers above, I estimate the annual net to be just shy of $48,000/-. The real estate agent has informed me that the rent is now $3200/month which is a significant increase however it also includes water, representing a 30% increase in rent if I assume the cost of the water utility hasn’t changed drastically in the last 2-3 years. The increase in rent drops the net profit estimation to around $40,000/- annually.

The neighborhood is primarily houses in a middle-class neighborhood with apartments and conodominium towers in the area. The nearest competitors are about 7 miles in either direction and also offer wash/fold services but without delivery. I feel the business definitely has potential but what I’m unsure about is the valuation of the business. Especially as there are machines that are currently out of order (2 washers are listed as for parts only) and need repair.

I have no information on when the last time these machines were serviced and not really hopeful on those records existing. I have an approach to this business in my mind that I feel will definitely elevate the operations and financials in due course but hope to offer anywhere between 75-80% of the asking price of $224,000/-. In speaking with the realtor, he did say the seller is open to seller financing but this depended on the offer and terms. Do you think it’s wise to present an offer in the range that I’ve mentioned, put down 20%, have the seller finance 20%, and apply for a 60% loan?

Is there anything that I haven’t considered and should be?



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