When to ask for more details

[Alex Alleva]

I recently got some info on a laundromat for sale from a broker in my area. He gave me the address and a simple break down of the income. Here is what he gave me:
Gross:156,000
Rent:35,400
Water/Sewer: 8000
Gas/Electric: 18000
Payroll(2): 24000
Insurance: 1500
Supply:3600
Internet:1500
Maintenance:1800
Total Expenses 93800
Net:62200

Now obviously with these numbers the laundromat looks good but these are very basic number. The asking price is also very reasonable. However i probably will not pursue this laundromat because of a couple factors.

Location- Its in a very rough neighborhood with alot of nicer laundromats near by. It is also kind of hidden in a side street neighborhood with no real parking etc.

There are some other reasons but that definitely a big one.

My question is do you think its worth it to ask for more info on the location from the broker just to better learn how to fully evaluate laundromats? Keep in mind i dont want the broker to think i am just stringing him along. Also does asking for utility bills, the lease, machine make and model, etc constitute me needing to formally enter a “due diligence phase”? If that makes sense. I basically want to window shop this business but dont want the broker to feel duped by me. Maybe i am over thinking this.

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