Are coin laundromats a good investment?

Laundromats in the U.S. see an average cash-on-cash ROI of 20-35% (9)—much higher than most alternative investments. And when you factor the flexibility and low labor costs, laundromats just make sense. All the benefits of a profitable investment––without all the risks.

How profitable is a coin laundry business?

Laundromats generate about $5 billion in combined nationwide gross annual revenue. Coin laundries can range in market value from $50,000 to more than $1 million. Coin laundries generate cash flow between $15,000 and $300,000 per year.

How much does it cost to open coin laundry?

Expect to pay between $200,000-$500,000 to open an average-sized laundromat due to commercial-grade equipment. No matter our differences, there’s one thing we can all agree on — clean clothes are a must. That’s probably why coin laundromats can generate anywhere from $15,000 to $300,000 in annual cash flow.

How do you finance a coin laundry?

Sellers usually require a down payment of 30-50% of the purchase price. An interest rate of 5-8% and a loan term of 5-8 year fully amortized are typical. HELOC — your Home Equity Line of Credit. If you have equity in your home, this is a great way to raise money for your coin laundry acquisition at favorable terms.

How do I start a commercial laundromat?

Start a laundromat by following these 10 steps:

1. STEP 1: Plan your business.
2. STEP 2: Form a legal entity.
3. STEP 3: Register for taxes.
4. STEP 4: Open a business bank account & credit card.
5. STEP 5: Set up business accounting.
6. STEP 6: Obtain necessary permits and licenses.
7. STEP 7: Get business insurance.
8. STEP 8: Define your brand.

Why are there so many laundromats for sale?

Aging Equipment Rather than reinvesting into their business, they opt to sell their laundromat, often at a discount. This requires a large outlay of cash or taking out a large loan that will cut into the cash flow of the business. Many laundromats that are listed for sale fall into the aging equipment category.

How big is the card system laundromat in Philadelphia?

This is a 5000 square-foot card system laundromat that is situated on a freestanding building with 15+ parking spots 13-year lease in place. Breakdown of sales are 95% self-service 2% wash and fold 1%… More details » Well established modern laundromat located in South Philadelphia bordering New Jersey.

What is the size of the Bucks co laundromat in Philadelphia?

2900 square-foot card system laundromat located in Northwest Philadelphia 40 dryers 31 washers (15)years old all in great shape manufactured by Maytag. 10 year lease in place plenty of parking. 57%… More details » Well established Bucks Co. /NE Philly Organic Dry Cleaning Plant located in a very busy strip center.

How many washers and dryers does continental laundromat have?

Breakdown of sales are 95% self-service 2% wash and fold 1%… More details » Well established modern laundromat located in South Philadelphia bordering New Jersey. Featuring card system and equipped with heavy-duty 32 washers and 33 dryers manufactured by Continental.