Laundry & Vending Machine income?!?

[Johann Kleisch]

In analyzing a 50 unit half 1br half 2br, what should I estimate for on site laundry income and on site vending machine income monthly?

Thanks in advance!

[Mike B.]

@Johann Kleisch

@Joe Baron asks some very relevant questions to answer how much you might make.  Also consider the condition of the laundry facilities....a dark and dingy room in the basement that looks like you could get mugged in is not going to do as well as a brightly lit, large and clean room with clean machines.  

As for pro forma income, assume there is at least 1 person per bedroom that needs to do laundry weekly.  That would be 75 people minus your vacancy factor.  Also assume the pricing per wash is $1.50 and one dry cycle is another $1.50.  Most people will separate their laundry into at least whites and darks, giving them two loads to pay for.  That would be $6/per person/per week.  So assume somewhere around 5% vacancy and that give your roughly 70 people X $6 in machine use X 4 weeks in a month = $1680.  That would be a really good month!!  However the reality is, not everyone uses the machines and/or does laundry weekly.  If you took a conservative estimate of 40-50% of that amount and used it before reducing it further given the answers to the questions about condition of the room and equipment and whether or not a third party handles the income and machines, then you would have an decent and conservative number to work with.