Coin-Op Laundromat Plus Multi-Family?

Question

I am looking at multi-unit on Monday. What I do know is that there is a whole lot of renovation and reconfiguring needed. There are currently 14 "rentable" units. However, it is not zoned properly, the current owner. Is renting by the room with shared kitchens and bathrooms etc. So I will need to knock down walls, combine into properly zoned apartments, etc. I've got a zoning variance and special exception in this township before. That doesn't bother me, nor the scope of work, nor analyzing the numbers.

My question is in regards to the fact that there is also a store front on the property. As of now, I'm not going to run any numbers based off of income from that unit. It's a small town, and getting a long-term business tenant in there will be difficult. So, I will need the deal to work with $0 income from that unit. What I am considering is putting in a small self-service laundromat. This is a small, rural town, and I think it is a perfect business to put in the space. I checked zoning and it is permitted in this area.

What I'm looking for is thoughts on cost to put 6 or so commercial washers and dryers, soap dispenser, etc. Also, how can I make it as automated as possible? The reason I ask is that I love about 35 minutes away, and going there every morning to open up and every evening to close is not viable. I know an option for that would be timed locks. I've used laundromats with timers on the door. The other issues is cleanliness, upkeep, and collecting money. I may be able to hire someone to come in daily and clean everything on a daily basis for an hour or two, but I'm not sure how to handle emptying the machines, or refilling a change machine, etc. That is something I'm not prepared to delegate out to someone. Is there some kind of card system, where people could load up money/credits at a kiosk on to a card, and then swipe them at a machine? What I'm thinking of is similar to the loadable cards at arcades and fairs.

I know I threw a lot out there, but I'd just like to see if it is a feasible option. If not, I'd probably just use the place for storage.

Wendy Forbes · Answer

Yes, I do think it was a cost issue. I hope you find a way to do it. These small towns desperately need laundromats.

Jason Krick · Answer

@Wendy Forbes

In my very, very limited research, the information that I've come across is that the sewer tie-ins can be obscenely expensive. Like hundreds of thousands of dollars. Also, it is said that the cost of water is the fastest rising utility price right now. My guess is that those are the issues. My hope, is that this building already has a sufficient size sewer line tied-in. There is no municipal water, so provided the on-site well can handle the volume, there is no worries about that cost. I'm also not looking at a 2000-4000 sq ft state-of-the-art facility. Just a couple hundred square feet with a few machines for the locals.

I will say that I don't have a whole lot of hope that this deal goes through, but I owe it to myself to at least look into it and run the numbers. The laundromat would just be a little icing on the cake, so to speak. Not needed, or counted on, but a way to get some extra cash flow out of an otherwise dead area of the property.

Wendy Forbes · Answer

Various property owners in my small Vermont town have been trying to put in a laundromat for years. I've been told they keep running into insurmountable water and sewer issues. Not sure what those are, as I haven't looked into it, but it's worth checking.

Coin-Op Laundromat Plus Multi-Family?

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