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Updated over 17 years ago,
Car wash businesses
Recently I have been looking at commercial properties as well as 16+ multi-unit apartment buildings as an investment possibility. As I was looking on loopnet for pure commercial I have been noticing that there seem to be a much larger number of car washes for sale than any other type of commercial property in most cities I'm looking. Is there a reason for this? Is there something bad or undesirable I should know about that type of commercial property. If not why are so many more of those for sale than any other type (and at significantly higher cap rates I might add)? Maybe its just the cities I'm looking in, but the skeptical side of my brain is whispering that it must be something else. I'm trying to do my due diligence here however not having any knowledge of that business makes it kinda hard. I have no desire to own the business itself just the land and maybe the building with a tenant renting from me (preferably on a triple or absolute net lease).
One more question, I have heard that triple net leases are pretty hands off. Is this also generally true of gross, net and double net leases. Or will I need to get property management for those kinds of commercial leases? I ask because this will be a long distance investment and I don't have the time or inclination to do anything but the most basic and sporadic management (calling a plummer once a month is not a problem, but "toilet and tenant" issues that plague most residential real estate is not something I want to deal with in a commercial investment, I want a tenant that will govern themselves as much as possible).
Any advice for a commercial newbie?