Car Wash Owners/ how to analyze?

[Katie Sorensen]

Hey Guys,

I'm working on my passive income goals this year and have my eye on a car wash. Wondering if anyone owns one and how you analyzed it? Any tips or insights? 

[Dave Carpenter]

Katie, I purchased a pair of car Washes about a year ago in WI. I looked at it just like I would any investment. Cap rate, ROI, etc. I found that the cap rates were a bit stronger than a similarly priced apartment building.

One thing to consider is depending on the type of car washes they are closer to buying a business compared to a more passive rental property. For my fully automatic car washes with no employees, I am there about every other day checking on things and fixing small problems. The timing is pretty flexible, but if something breaks I have to respond. 

Hope that helps a little. Please let me know if you have other questions!