Has anyone Owned Car Wash and/or Laundromats? How does it compare to Rentals?

[Greg P.]

Hello, the housing market has really slowed down where I'm from and prices have seemed to have gone up. I'm looking to reinvest into other ventures until things have stabilized. The returns and financing terms seems to be very favorable with 100% returns on the first year for laundromats/car washes. I'd like to know which is better Real Estate or these businesses? If both is good to have in the portfolio and how it compares to real estate? The cashflow comes in larger chunks in the businesses.

Example #1-

There is a laundromat for sale that has literally automatic everything (ie. doors unlocks at 8am outside/lights lights turn on by themselves etc). This guy who owns the place only goes there twice a week and has a cleaner cleaning it everyday. Brand new machines etc, and the returns are 100%.

Example #2-

Buy a rental cash for $50k, fix up for 15k, and rent out for $1,200. Then refinance at 70% of new appraised value ($130k) which would be $91k. I'd actually be able to get back 91k-65k= approx $26k with a 91k mortgage. I'd guess the property would cashflow approx $250-300 with a mortgage. The advantage is I would get all my initial + extra cash in pocket to buy more.

The returns seems better with Example #2, but I don't know how many properties they will do this for. I'm wondering which one is more hands off, and has more potential in the long run with less headaches etc.

Thanks everyone.