Home Forums Laundromats Buying first laundromat

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    Farhad Nadri

      Currently, I’m evaluating a laundromat deal where the property has been operational since 2012. The broker offers two options:

      Purchase the property for $600K, undertake renovations, infrastructure investigation, and equipment replacement at my own cost.
      Pay the same price of $600K, with the broker adding 28 new washers (ranging from 20lb to 80lb) and 22 dryers, along with remodeling.

      The proforma provided, coupled with demographic analysis, suggests a potential NOI of $84K annually for three turns and $158K for four turns. The rental cost is $5500, with a loan payment of $6484 if only purchasing the business.

      Considering these factors, I’m inclined to lean towards buying the property, redirecting lease payments towards the mortgage, and investing $400K in renovations and equipment. I’d appreciate any insights or opinions on this approach.

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