4Plex Coin Laundry? Buy vs. lease and how to collect funds?

5 Replies

Hi,

We're in the process of acquiring a 4plex in Colorado Springs.  Current owner had a leased machine in the building from a company called Jetz.  Reading reviews on line, they didn't seem that great but haven't had anyone tell me about them from first hand experience. 

Two questions:

1) Should I purchase a commercial washer/dryer?

2) Should I lease instead?

Also, we don't live near the place we are buying (out of state) so was wondering how coin collection works?  I've never had one in our units before.

Finally, does anyone have any experience w/ the credit card machines?

Thanks!

Farakh

Farakh, 

In general, I would say if it is a 4plex you can get away with purchasing 1 washer/dryer for the property. No sense giving away a large percentage of your laundry income to the laundry leasing company. Coin collection if you owned it would be up to someone you trust who lived nearby to empty out the machines. 

The credit card machines work well, however, I am only familiar with the companies that operate in Los Angeles. An added bonus is that you wouldn't have to deal with coin collection.

Best

Farakh,

I own a couple of coin laundromats myself. I have a different situation but to keep it simple I would advise you go buy a used soft mount washing machine such as a maytag top loader with a coin acceptor. There is a good market out there for used commercial equipment that you could get for good price. I am suggesting this with the assumption that your not going to be washing in high volume. Maybe 4 loads per week per unit so 16 with 4 weeks in a month brings us to 64. At that rate your coin collector may need to be emptied once a month assuming its in a safe location and your not concerned with theft.

For the record I own a good amount of LG's new commercial units (all soft mount type) and they perform well. You wont be able to find any used but a new washer dryer set may run you around $4000 with this route.

These are just my suggestions if you go down the road to purchase. I dont have any experience leasing equipment. First thing I would do is find the local laundry distributors and find out what offers they can make you.

Thank for info, currently looking into turning an existing storage/garage- into a small laundry for a triplex here on Los Angeles. 

better check that current lease, I've seen few threads on here (not sure of company) that made it nearly impossible to get out of the lease. They charged crazy fees if memory serves correct and I think had wording that threatened legal action. No idea how they turned out though...

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