Hi All,
I’m new to this. After looking all over LA and only finding laundromats with over 50% broken machines and books that didn’t show a profit I have just found a laundromat in my area “Hooray!”. The problem is the rent and triple net are much higher than the location could previously support.
History:
Tax return yr Rent pm Triple Net LA DWP SoCal Gas Insurance Expenses Profit yr:
$94k $3,000 $0 $3,000 $1000 ? ? $10,000
$114k $3,000 $3,000 $2,500 ” ” $12,000
$125k $3,000 $3,000 $2,500 ” ” $23.000
The location has been closed for 7 months and the building renovated. We now have x4 tankless gas water heaters and 18 solar panels on the roof but water rates and gas prices are much higher now. I might drop $50k on a greywater recycling tank as well. Below is the new rent and insurance $93,600 per year.
Tax return yr Rent pm Triple Net LA DWP SoCal Gas Insurance Expenses Profit yr:
? $6k $1k $4,000 $3,000 $300 $1,000 ?
I’m excited to add fluff and fold and pick-up and delivery services but they have their own associated costs. Can we discuss these numbers? The building owner doesn’t want to lower the rent and I’m very worried that this just won’t work.
What do you think? Do you have any insights into making the deal work for getting more out of the location?
.
