How much is this laundromat worth?

[mtbenham]

I have finally located a laundromat for sale. it's 150 miles from my home in a small, rapidly growing town. I would be buying the building, the property, and the business.
Gross $6,000 - $8,000 month
Utilities average $1,320
Taxes $200
Insurance $200
Part-time worker salary $1,060

50 x 50 metal building built 1971
34 top loading washers installed 1971 at $1.00 each
3 front loading Milners (35 lb) installed 1998 at $2.00 each
2 front loading Neptunes (double) installed 1975 at $1.25 each
15 large dryers at 25 cents
14 stack dryers at 50 cents

Exellent highway location with great parking lot.
Growing, busy town with excellent potential 30 miles from major city.

How much should I offer? Asking price is $250,00.

[StoneColdKiller]

Well,

I won't attempt to list the detail, but your expenses will probably be double what you have listed here, or at least in order to guestimate a value you must be that conservative in your thinking. At that rate there is very little profit to be had for what I consider to be an equally little gross. Therefore the business is probably worth very little, especially with aged equipment. At the cost of fuel for your car, I assume that you are in need of a serious loss to offset other income that you may have? Your gasoline bill will surely be larger than your net. As far as the value of the real estate, I would definitely say it is worth somewhere between 2,300,000 and 3,000,000...at least where I live. Tough question isn't it?

[neal]

Why in the world would you buy a mat so far from where you live?

[millenniumplus]

One way to go about it is to find out what the assests are worth and go from there.
Where do you reside? As noted in a previous post, land and building and what it cost
can vary greatly throughout the USA, yes. Then add up the value of the machines along
with the land/building value. With a lot of old machines do consider repair of equipment
and building upkeep in monthly debt. If the location is as good as you say there is room
to grow the business and you don't want to contend with a lot of downtime which effects
your bottom line. Cannot give you a reasonable asking price. Just giving you one way you
can "start" to come up with an asking price along with input from the other owners here.
Uhh, other things to factor in - unless you pay cash, factor in a loan payment with the your
other monthly debts. Another debt or cost to consider would be the purchase of new or
newer machines. Keep us posted and most of all good luck!

[petefritz]

Unless you plan to move to this rapidly growing town I would pass. You can not run a laundromat sucessfully and have max profit potential from 150 miles away. It is a hands on business, and I mean you have to visit the thing personally. Sometimes in the middel of the night when you get broke into.

[mtbenham]

Because I want to move there.