Anyone have experience in buying a laundry mat?
I'm thinking about buying a laundry mat, but have no idea where to start. Any tips would be greatly appreciated.
@Kevin C. owns a couple here in Anchorage. Try reaching out to him via DM.
#1 Commercial Real Estate Investing Contributor
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A. Unless your mechanically handy your maintenance costs will eat you up. Make sure that is part of your deal analysis
B. If managed by the owner currently and you plan to hire people add in a 30% loss of revenue. This is a cash business. Move to an electronic card system even for the soap dispensers.
C. Take an inventory by age of all of your equipment. Run every machine with a load in it. If old equipmEnt you need to add $xx,xxx capex costs for the next theee years while you clean things up.
D. Check your infrastructure. Roof, plumbing, hvac, water heater, etc
E. This isnt passive or a side hussle. Quit your job and take this on. Can do your REI while doing this.
@Anna Washburn are we talking about buying the building, the business or both?
As an example of an "upscale" and/or automated Laundry Mat, check out Zoom Express Laundry in Richardson, TX. I went there to drop off something for a person working there and, stopped in my tracks! "Modern" laundry mats are NOTHING like I remember from long ago! hahaha
Oh, looks like they've changed names (owners?) to Revolution Laundromat ... hey, it's a cash business (like car washes), this happens! (no, I have no part in their business or affairs!)
Quote from @Anna Washburn:
I'm thinking about buying a laundry mat, but have no idea where to start. Any tips would be greatly appreciated.
What in particular are you trying to understand? In the early 2000's I owned the highest grossing (per square foot) laundromat in Los Angeles county. I learned a lot.