All Forum Posts by: Dave Carpenter

Jackson, just to clarify, is this duplex in the Washington heights neighborhood west of hwy 41 and Washington Park? 

never heard of that being done. I know banks view car washes as a specific type of property, similar to gas stations. Usually they are not as desirable to banks since they are basically single purpose properties. Go prove the banks wrong!!

Max Gomeniouk welcome! In terms of referrals around Thiensville, I don’t have anyone directly, but know a few people doing business in that area so will send out feelers. What’s your budget for flips? Are you looking for a $130k gut job or a $300k house?

Anthony, at that price I think you made the right call. Only thing I’d consider is if the storage unit and wash were in the path of progress and on a busy street where there would be upside potential. I also don’t like the idea of leasing the land from the owners. That’s a big variable you would have limited control over unless you signed a long lease to guarantee those profits. Let us know what you find next!

Brian, I'll see if I can get that in the calendar tomorrow night. Should be able to make it work.

Christine S. glad you were able to find some help on here! I just bought 2 car washes about 6 months ago and did the same research on BP. As you continue forward I'm glad to be of any help I can with my limited experience. So far it sounds like you guys are looking at this with the right eyes. Your husband having some mechanical knowledge will go a long way in the day to day management. I have found I spend less than 40 hours per week on mine at this point.

Welcome Ryan Biankowski ! Where is the live in flip located?

Mike, I agree with Michael Henry about letting the tenant be surprised. In the market you are referring to you may find a family with a post college age child who is still living at home. A certain renter may find that extra room desireable even if you can't get the appraisal number to reflect it. If it's going to be a rental for you for a while then that is a different consideration that just thinking about the refi in terms of cashing out. Marcus Auerbach does make a great point about the cost vs benefit of a closet too. Home office could also be a big selling point in the North shore area.

@James Bridgers at a really high level this seems like it could be a good purchase. Income numbers seem pretty reasonable for a car wash in the midwest. Again, a high level, but it passes my sniff test.

 Based on the income statement it looks like the business has both auto and self serve. Those are two different things, so make sure you understand what you are getting into. This is a business that requires more day to day and week to week work. If you move forward, I would consider including some support from the current seller. There are lots of moving parts, and connections with plumbers, chemical companies, etc. that would be great to get from the seller. Could choose to use other folks down the road, but starting with companies that know the business and building is likely best. 

Any specific questions based on your conversations with the seller?

Shak, Good for you having options! Seems to me the bigger question is two parts. First, what type of investing is most interesting to you, and second what do you need to accomplish. For me, I was looking for cash flow to replace income from a W-2 job. That led me towards car washes which have a pretty strong cash flow, but require me to invest time in the business. For you the cash flow may not be as important, so you could shift towards investments that are more passive day-to-day. There may also be an area that is just really interesting to you. 

Go get 'em!