Home Forums Laundromats Potential Purchase of Laundromat

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    Can anyone offer feedback on the below potential off-market purchase for an unattended laundromat for sale? Any holes or concerns? How do I know if I have a really good deal or a so-so deal with delayed retooling of aged machines. Other broker listed laundromats in the area are listed for about 95k, with about 100k revenue and 35-37k cashflow. I see risks with having to replace many of the machines in the near future and end of lease that could lead to increase lease costs for the 5 year lease options. Feedback appreciated!

    Asking Price: $75,000
    Proforma Cashflow: $35,000/year
    Acquisition: 25% down owner finance ($18,750 with 7% interest for 15 year loan) or all cash purchase (not yet negotiated offer)
    Town in Maryland- 1 hour outside of DC
    Town Population ~30,000
    Pre-analysis Scorecard: 25 (Result: worth Further review)
    Seller: retiring after 16 years. growing old and bad back.

    1400 Sq foot Laundromat in Strip mall (leased. year 3 of 5 year lease. With 5 year lease option renewals expected. Owners have been in operation 16 years)
    Anchor tenant: Grocery store
    other neighboring smaller stores: take out shops, pawn shop, nail spa, Tax place, laundromat next to pawn shop

    22 washers
    20 dryers
    (all 20 year old wascomats)
    (two of the larger 40 lb washers are non-repairable, and 2 are out of order but fixable)

    Currently unattended. Owners unlock and lock daily 9-830pm operations. Coin-Op

    Proforma income (calculated, not owner provided):
    Assumption: 20 washers and dryers are in operation
    3 turns a day
    $9300/month Revenue

    Value-add proposal:
    -replace 2 non-fixable machines with 30 or 40 lb washers: monthly revenue increase to $10,300 ($1000 increase)
    -Renovated dated interior (retrofit lighting fixtures to LED, paint walls and washer stands)
    -Add Payrange dongles and convert entire facility to Pay by app (credit card or google/Apple pay enabled)
    -Remove coin hoppers. Facility entirely coin free.
    -Retool with replacing 10-16 of the 20 year old machines (potential once stabilized)

    Post ownership plan:
    -Unattended during the day
    -part-time employees to open and close daily, perform daily checklist (lint traps, sweep, light cleaning of machines, lockup)
    -consider full-time employee with wash and fold services once stabilized after 2-3 months. Look for other leased vended machines refilled by vending route (profit sharing).

    Any holes or concerns? How do I know if I have a really good deal or a so-so deal with delayed retooling of aged machines.

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