Rental Property Investor · Paola, KS · Member since 2017 · 39 posts · 20 votes
There is a gas station at a very busy intersection in town that has an attached automatic car wash that is not in use. I am not sure why it's not in use, but I have contemplated asking the gas station owner if they have any desire to have it going again.
I'm curious whether anyone here has taken advantage of something like this and made it a profitable opportunity? I'm not sure how it would work as far as profit splits etc. Or if it's even worth a shot trying to consider getting it up and going. Obviously there are a bunch of questions that need answered before making the decision to get it going again. But because of the location, and there not being any car wash in the area, it's got me at least thinking about it.
There is a gas station at a very busy intersection in town that has an attached automatic car wash that is not in use. I am not sure why it's not in use, but I have contemplated asking the gas station owner if they have any desire to have it going again.
I'm curious whether anyone here has taken advantage of something like this and made it a profitable opportunity? I'm not sure how it would work as far as profit splits etc. Or if it's even worth a shot trying to consider getting it up and going. Obviously there are a bunch of questions that need answered before making the decision to get it going again. But because of the location, and there not being any car wash in the area, it's got me at least thinking about it.
Interesting concept, My first question for the owner would be whats the current arrangement? Do they own that building, and operate the car wash and they determined it wasn't worth keeping going? Does the Car was operate independently and lease the building or the dirt from the gas station?
Ultimately it all comes down to location and visibility. You not only want to understand what the competition looks like, what the traffic numbers are like, if you have curb cuts in good places, and if the intersection is lighted will be a big deal also.
You also want to understand what the demographics and psychographics of the area are. Are there any man made or natural boundaries that create any physical or mental boundary that would cause a potential customer to not traverse that line?
I'd also try to understand what the industry norms for "per day" car wash real estate costs are, and how many vehicles would need to go through the car was per day to meet that. That way you can understand if the population density of the trade area would support the endevor.
What the real estate structure currently is of the property I think will determine much of if its "worth it". For me if you can assume a favorable lease, or get a favorable lease and some TIA to improve the place then it could be a pretty low risk way to try your hands at it. However, it involves purchasing a business or the building and there is a ground lease in place as well, That changes the overall deal economics a ton.