Reply To: Commercial Property W/Laundromat Inside & Addtl. Tenants

[Mayah wor]

Great breakdown, and you’re absolutely right to approach this deal with caution and a sharp eye. Combining the laundromat operations and the real estate into one P&L really muddies the waters and makes true valuation tough. A few thoughts:

You’re on the right track thinking about assigning market rent to the laundromat as a tenant. Without this, it’s hard to value the real estate accurately on a CAP basis. If the laundry can’t support market rent, that’s a red flag for both the business and the property valuation.

The suspiciously low maintenance expenses are definitely worth investigating—especially if the owners have other laundromats. It’s not uncommon for shared costs to be “conveniently” booked under a more profitable entity. I’d ask for utility and service invoices to verify actual outflows.

The separate metering is a plus—it gives you leverage to operate the laundry independently, if you choose to split the entities down the road.

Ultimately, if the numbers don’t work independently, it’s risky to assume they’ll work together magically. Trust your gut, and keep digging. Tools like m ration mitra have shown how local-level transparency can reveal the actual state of operations—and in your case, due diligence can do the same. Good luck, and keep us updated on how this evolves!