Purchase question

[recooper8]

I am new to this business, and am looking at purchasing a small (1300 sq ft.) existing mat. Can any of you give me some advice if the following is worth the investment? I will probably finance 50% of the purchase. Asking price is 145K

Grosses 80K and nets 30K. 5 year left on lease with 3% increases per year, in established shopping center. Older area and little room for growth other than increase wash, dry, and fold business. Machines average 5 years old.

I have read that a "good" rule of thumb would be 40 times monthly net or a sale price of 100K. Is this a "good" rule?

As I pursue this purchase what should I ask for and what do i need to look out for?

thanks in advance for all the forthcoming advice

[RWSmith]

The first thing I would look for is a long term lease. This is somthing the seller should do before you buy the laundry. Once you buy the laundry you have very little negoaiting power with the landlord.
I would also hire a real estate lawyer to look over the lease.

It is very difficult and expensive to move a coin laundry so a long term lease is important.

CLA has a lot of information on leases and running a laundry.

A laundry is only worth what someone is willing to pay for it.

I don't think 3 to 5 times the net is unreasonable.
Good-Luck