Hi all, sure theres a ton of Real Estate investors who have seen the cash on cash returns available in Laundry and migrating over as a result. My background is small/mid size multifamily and I’ve recently been in conversation with a coin operated laundry service, who own 30+ coin operated laundry machines in apartment buildings in my local market, and considering acquiring their business. The offer price is around $120K with an NOI around $35K, so a 3-4X multiple (need to verify financials in DD still).
Curious what some of the challenges you laundry vets would envisage in a business like this. When assessing risk and underwriting im trying to understand:
– Annual budget for repairs and maintenance
– Annual budget for capex
– Cost to convert from coin operated to card operated machines
Can someone help me with the above and perhaps point me to any resources to better educate on how to properly underwrite this kind of business?
Thanks so much in adv!