Laundry mats?

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anyone have personal experience or advice regarding owning a laundry mat business AND building.  I would not want to own just the business.  Both.  I have heard that it CAN be extremely profitable but also quite time consuming.  I guess if you had a good location and owned the whole enchillada it would be a cash cow.  But rarely see them up for sale.

Can 1031 into the building and some improvements. But not sure where the line is drawn and becomes business expense. Maybe own building as a person and lease to an LLC that has the business?

Curious about anyone's experience or advice

Thanks

@John Barnette you're looking at a mixed real/personal property exchange.  Real property can be 1031d into other real property and the rules are quite broad regarding like kind. Any kind of real estate may be exchanged for any other kind of real estate.  The equipment (FFE) may also be exchanged under 1031 but only for a much more specific like type equipment.  

If you are selling a building and laundry business and buying a building and laundry business you could probably do it all under a 1031 exchange very easily.  However if you are only selling a building and want to buy a building and laundry business you're going to have to pay attention to valuations to make sure you complete your 1031 properly.  

If you sell a building for 500K and want to do a 1031 you will have to buy a building and business where the allocation for the real estate portion of the property and business is at least 500K so you can complete your exchange without any tax liability.  The remainder of your purchase becomes FFE and your accountant will set up new and separate depreciation schedules for that equipment.

Medium ergDave Foster, Exchange Resource Group | [email protected] | 850.889.1031 | http://www.erg1031.com