Laundromat Resource Forums Laundromats Potential Purchase of Laundromat

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      John Diggers
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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

        Laundromat:
        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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    Laundromat Resource Forums Laundromats Potential Purchase of Laundromat