Posted by ray@lcorn on August 04, 2003 at 13:17:05:
Laundromats are more a business than investment property. They can be a stand-alone business in their own right, or just a nice sideline for inclusion in multi-family properties. They can also be used to warehouse (carry) a site for future development,
But they have their drawbacks as well.
They are a cash business, and as such the owner has to either take care of minding the store personally or have unconditional trust in whomever is taking care of it. The best operations are attended and offer wash and fold services, but that’s a hard slot to fill in the labor markets. The equipment can be expensive to buy new, and has little residual value. Maintenance is a specialty skill, and once the equipment ages it is a regular requirement. Laundromats can also be targets for vandalism and theft.
I’ve had several, and the most important consideration is the how and when of collection and maintenance. In short, the systems have to be in place to run the business. Do a search here in the archives and you’ll find over a hundred posts on the subject.