Coin Op Laundry Leasing

11 Replies

Does anyone have experience with leasing coin op laundry in small multi families? I’m aware of some places that have a minimum unit requirement, but would like some options for our 5 unit portfolio (or maybe only a portion of that).

I use Cincinnati Coin Laundry for my 4 family.  They maintain the machines and pay me a small cut every quarter.  

@Paul Sian thanks! You seem to be the only person in cincy that ever has recommendations; much appreciated!

I use Cinti coin in some of my buildings larger than 4 families. I did not know they service 4 families. In some of our 4 families we purchased refurbished machines from Great Lakes Commercial or (Wash). They typically cost $500 a piece. The good news is you get all the revenue but the downside is that they are slow to service your machines if they do not own them.

I hesitantly went with going that direction having a company come in supply all new machines, there are 4 laundry rooms in the complex it’s a 50/50 split... wink wink probably more like 60/40. But it’s ok I didn’t have to purchase new equipment but am tied to a 3 year deal. After time is up I’ll most likely buy the equipment and do it myself.

@Rich Lodge I prefer to buy my own machines. I'd recommend that you go over the coin op laundry companies' contracts with a fine-toothed comb, I know several investors who've been locked into very long agreements and those agreements typically transfer when a property is sold. If I see Cincinnati Coin machines when I'm showing a property to a client, I tell them to project $0 laundry income for their pro forma, and just be pleasantly surprised if the arrangement with Cincinnati Coin works out in their favor.

Good input from all, thanks guys. After having talked to cincy coin I think, like most of you, it makes a lot more sense to just buy my own machines.

I am a fan of CIncinnati Coin and use them for some of my larger properties but

If you are looking to buy your own, I recommend the refurbished Maytag machines that Great Lakes sells. As mentioned they run about $500 per unit and have a coin drop instead of a coin slide. This makes it much easier to change the prices on the machines. Do not get one with a coin slide because they are difficult to raise prices

Like others, I would advise buying your own machines.  We have had very little maintenance required on the machines we own.  We purchased one building with Cincinnati Coin machines and inherited the contract.  It pays us next to nothing so the $0 laundry figure is a good estimate.

Originally posted by @John Lenhart :

I am a fan of CIncinnati Coin and use them for some of my larger properties but

If you are looking to buy your own, I recommend the refurbished Maytag machines that Great Lakes sells. As mentioned they run about $500 per unit and have a coin drop instead of a coin slide. This makes it much easier to change the prices on the machines. Do not get one with a coin slide because they are difficult to raise prices

 Good point John.

Cincinnati Coin has 4 washers and 4 dryers in my laundry rooms. My monthly check is right at $500 per month. I think that the split is "50/50"... I have never signed a contract with them and the machines were in my complex when I bought it 2.5 years ago. 

As others have said, a $4,000 investment in my own machines (4 washers/4 dryers) would break even in 4 months, if you assume that I would take the full $1,000 per month instead of the $500 that I receive now... And if I added Coke Machines in the laundry rooms, that would probably bump me another $200 bucks per month... 

which would make the $1,199 per month lease payment on the 2018 Porsche 911 I've been looking at.

DL

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