Rundown laundromat with 1/3 of the machines out of order and business in the red

[Jordan Berry]

Hi all,
New to the forum and excited to be joining you guys. So my wife and I are looking for our first laundromat business to acquire. I’m a W2 earner and my wife has her own business so we have experience running small business and looking to expand. I found a pocket listing for a sizable laundromat that we could acquire now with cash. Details below.

Pros: Close proximity to home, big size, ideal customer demographic, no SBA financing needed due to low asking price, lots of potential to optimize and make money, space to add additional rev streams – vending/massage chairs/games/etc…

Cons: Biz has been mismanaged by owner and currently in the red, CAM is 50%+ of gross revenue, machines are 15+ years old with 1/3 of the machines out of order and given the owner has not been present with the business assuming I will need to fix/replace most of the machines, very poor online presence with 1 star avg reviews on Google/Yelp

Thoughts? Given it’s our first go round I would prefer to avoid risk and get more of a turn key profitable laundromat but I can see the potential. I would imagine just cleaning the place up and getting machines that actually work would help tremendously and I can work on re-branding the business.

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