So I know this is random but I have been reading into owning a laundromat as an easy to run business. It looks as though there is a lot of upside potential and not too many negatives. Aside from the start up capital and having employees instead of tenants there seems to be a lot of similarities with real estate. I am particularly interested in the passive cash flow and convenience of not having to be on site daily. Does anyone have any experience know of anyone that has experience with this? It would be great to get some insight!
Specialist · Anniston, AL · Member since 2013 · 59 posts · 32 votes
9y
I have 3 that I have been running for 6 years. There are a lot of advantages to other businesses and you have hit on many of the top issues already.
Initial investments can be high.
Never trust an employee to handle the cash. That's your job or a very trusted friend or relative.
Repairs can eat you up if you can't do a lot of the small stuff yourself.
You don't have to have employees. Two of mine are unattended and I have cleaners go in once a day.
But it is a business and if you are serious it will take time to understand th business and th market before you invest. It's not something that can move and most initial leases are for 10 years.
I have been posting info on my site LaundromatHowTo for a few years. There is also a YouTube channel and PodCast with the same name.
I have done well with Real Estate in SFH but I'm down to one now.
Specialist · Anniston, AL · Member since 2013 · 59 posts · 32 votes
9y
I have 3 that I have been running for 6 years. There are a lot of advantages to other businesses and you have hit on many of the top issues already.
Initial investments can be high.
Never trust an employee to handle the cash. That's your job or a very trusted friend or relative.
Repairs can eat you up if you can't do a lot of the small stuff yourself.
You don't have to have employees. Two of mine are unattended and I have cleaners go in once a day.
But it is a business and if you are serious it will take time to understand th business and th market before you invest. It's not something that can move and most initial leases are for 10 years.
I have been posting info on my site LaundromatHowTo for a few years. There is also a YouTube channel and PodCast with the same name.
I have done well with Real Estate in SFH but I'm down to one now.
Investor · Milwaukee, WI · Member since 2009 · 89 posts · 44 votes
9y
If you get very serious about purchasing, there's an excellent book called "Coin Laundries - Road to Financial Independence" by Emerson G. Higdon. It is out of print. I paid $50 for my copy when it was in print and have seen people pay $200 for a copy. It's absolutely excellent and does a high dive into the VERY deep end of the coin laundry pool, including a lot of mathematical and financial analysis.
Google around- sometimes they pop up at independent used book sellers for $20-25. Amazon is normally $75+ when they are available.
Full disclosure: I am not associated with the author and have no financial interest in whether you purchase this book.
Specialist · Anniston, AL · Member since 2013 · 59 posts · 32 votes
8y
Older machines can last up to 20 years but like cars it depends on the amount of use they have had.
I usually try and find out why they are selling before I get too committed. "Looking at new opportunities" doesn't cut it for me. Some people will sell a profitable laundromat because they want to invest in something else.
Other, more common reasons are illness, divorce , age, moving, equipment needs replacing, too much maintenance required, constant employee issues.
Keep in mind these are not as passive as rental real estate. Even unattended they require daily cleaning, regular maintenance and someone to move the money around on a regular basis.
But you always have to be ready to deal with this as well.