Need help deciding on cheap $47K mat for sale

[brooklynguy]

Just looked at a laundromat for sale in new york city. It's on a commercial street w/ not many apartment buildings right next to it. However, there are many apartment / brownstones w/ off of the main street. The seller has had the place locked up for 3 months or so. It's in good condition. A little work and could be alot better. The 20 washing machines are probably 5-10 years old. Same for the dryers, but they're in decent condition. He say's his dad ran it but fell ill and he's got no time to run it.

The asking price includes 20 Primus Stainless Steel washers and 16 dryers, vending machines, folding tables, change machines, soap and EVERYTHING else you might need. A lease with 11 years remaining at $992 with 5% increases a year will be assumed. Neighborhood is middle class but beginning to gentrify. It's a nice place and seems really cheap at $47K. He never tried to do much wash and fold, drycleaning or pickup delivery. All of these things could add revenue as there are large/upscale neighborhoods w/in a mile. There's one other mat a long block away that was busy on saturday night at 7:30.

What should I really be looking out for. I work 60+ hours a week in the city. I'm I crazy to imagine that I could buy this thing and make money with it. Expenses w/ out attendants runs about $1500-2000 per month. Why would he be selling so cheap if it wasn't just sucking wind?

[petefritz]

You might try and get water bills for last year, and ask for any statement the dad may have kept for income, that gives you an idea of the base revenue. A mat remodeled and fixed up will generate even more. I don't like 5% increases a year when inflation runs at 2%, that will come back to bite you hard in a few years. Other than that, hard work and risk, it might pay off. If not, it is not that much to loose. Working 60 hrs a week, where do plan on finding time to run it? The first few months will comsume much time, after that it is not to bad. Not everybody is cut out to run a mat, maybe that is one reason for ther price, the guy does not want to mess with it.