Coin laundry for 4plex - replace machines or use a service?

Question

Hi everyone,

I need to replace a gas washer and dryer at a 4plex in Dakota County.  The units were recently remodeled, and the laundry room is the only thing left to tackle.   Currently there is one coin operated dryer and one washer, both gas, and they are in very poor shape so they definitely need to be replaced.

My question is:  Should I buy a new coin-operated washer and dryer, or should I use a company that would supply the machines and handle service?

If I buy new machines - any suggestions for reliable but inexpensive units?  The 4plex is newly remodeled and in a decent area, but with the age of the building and size of the units, top-of-the-line appliances don't really make sense.  I have heard good things about Speed Queens.  Whirlpools appear to be an economical choice, but reviews seem to indicate they require too many repairs.

If I use a company - what are some of the companies around here?  I have heard of arrangements where the company keeps a percentage of the coin income, or of lease arrangements. The attractive factor for me is that they handle service/maintenance, even if it's less laundry income.

I have considered forgoing the quarter machines entirely, but I have another 4plex in Hennepin (south of Minneapolis) that came with a coin washer and dryer, and the amount of income is surprising.  I plan to hold both 4plexes for many years, so if I buy the machines, it seems like they'd pay for themselves in two years if the income winds up being comparable to the other building.

Open to any suggestions - but I'm posting this in the Minneapolis because I'd like to know what are good local options.  (If I buy a new washer and dryer, I would definitely need them installed and the old appliances hauled out, too.  If I go with a company, I'd probably eventually switch the other 4plex to that company and sell the washer/dryer that's there.)

Thanks!!

Pat L. · Answer

We sold our tired old coin-ops & put in a new scratch/dent washer/dryer. Its a 6 unit so we told the tenants it's now free as long as they respect it & others using it. We then raised all rents $35/unit to cover the cost of water/elect & any repairs. Running gas was a logistical nightmare, so I sub-metered the elect dryer & found it avg $28/month & found any extra water consumption from before minimal.

Its been 3 years now & the laundry room is kept cleaner, appliances are running well & no complaints. So it has kept everyone happy & they love the free ($35/month) laundry !!

Alyssa Strom · Answer

@Raquel Doheny All I can say is do NOT use CSC ServiceWorks if you go the service route!

Jadde Rowe · Answer

I would recommend replacing them and not hiring a company to partner with. Like you said the income that the machines generate will repay themselves even with the small repairs that come up from time to time. Typically you don't have a ton of repairs that come up. For good local options in the Twin Cities I would call Builder Appliance or Big John Appliance and get their recommendations on where it would make the most sense to buy from. Those two places have done appliance repair for myself and my clients in the past. I know I have had clients ask them where to find the cheapest route for washers and dryers if the repair is too much so that would be where I would go if I was you.

I hope that helps! Best of luck.

Karl B. · Answer

If possible, look for used coin-ops on Craigslist. I buy most of my coin-op washers and dryers from there and they can often be had for under $250.

David Avery · Answer

ALWAYS REPLACE.  You control the money.  From a business advantage.

Also we always had coin operated on four plexes all day long.

The numbers for the additional income when selling was almost 10 times the investment

Tom McGrath · Answer

I have a three unit multifamily that had coin op washer and dryer when I bought it.  I have replaced each once over the last seven years and the whirlpool washer I bought five years ago needs to be replaced again.  This time I am taking the repairmans recomendation and getting a speed queen.  The whirlpools definitely will need repairs and then will die on you.

Rob Throndson · Answer

@Raquel Doheny  There's a guy who lives in Bloomington, name is Mike, that services and sells coin opp washers & dryers. I've purchased a washer from him before and can recommend him.  Let me know if you want his number.  I believe he posts on craigslist units for sale.

Joe Splitrock · Answer

@Raquel Doheny I would avoid a service and just replace. A service will build repairs, administration and profit into their cost. Odds are good with bonus depreciation, you can write off the entire expense on 2021 taxes. Income is cash, which means it is ripe for skimming. That would be my concern with a service or anyone but me emptying the machines. Put a camera in the laundry room in case there is theft or abuse of the machines.

Raquel D. · Answer

@David Avery  Thank you, that's the kind of feedback I am looking for!  Especially that you've used them in 4plexes.  I found a lot of older posts with duplexes, but having 4 people/families use a machine vs. 2 seems like a very different equation.

@Jadde Rowe I really appreciate it, I'll contact those companies this week!  It is good to know your experience is that there aren't many repairs, too.

Coin laundry for 4plex - replace machines or use a service?

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