Is Buying an Existing Laundromat a Good Investment?
Purchasing an established laundromat can deliver impressive 20-35% ROI when you find the right business at the right price. After helping broker over 50 laundromat deals in the last decade, I’ve seen firsthand how these cash-flowing assets can provide semi-passive income with relatively low operational complexity compared to other small businesses.
Why Existing Laundromats Can Be Excellent Investments
Established laundromats offer several advantages over both startups and other small business options:
Immediate Cash Flow
Unlike building a laundromat from scratch, purchasing an existing operation means walking into immediate revenue. When I acquired my third location in 2015, it was generating $12,700 in monthly revenue from day one. That immediate cash flow meant I could start servicing debt and paying myself a modest income immediately, rather than weathering an extended startup period.
Proven Performance History
One of the most valuable aspects of an existing laundromat is its operating history. When you value a laundromat, you’re not working with projections but actual performance data. This eliminates much of the guesswork around potential earnings. The seller should provide at least three years of profit and loss statements, allowing you to calculate accurate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) figures and determine a fair purchase price.
Established Customer Base
Neighborhood laundromats often develop loyal customer bases. When I purchased my downtown location, I was pleasantly surprised to discover many customers had been using the facility for over a decade. This built-in customer loyalty provides stability that new operations can take years to develop.
Shorter Path to Profitability
With equipment already installed and operational, you’ll avoid the significant capital expenditures and construction delays that come with new builds. My friend spent nearly 13 months and $110,000 more than budgeted getting his new laundromat operational due to permitting delays and construction issues. Meanwhile, his brother purchased an existing location and was cash-flow positive within the first month.
Related: 3 Reasons Why You Can Buy a Business Without Experience
Determining If a Laundromat Is a Good Investment For You
Before you start browsing listings for a coin laundromat for sale, you need to assess whether this business model aligns with your goals and capabilities.
Financial Considerations
Most quality laundromats sell for 3-5 times annual SDE (Seller’s Discretionary Earnings). For a business generating $100,000 in owner benefit, you might pay between $300,000-$500,000, depending on factors like equipment age, lease terms, and competitive environment.
To make this investment worthwhile, you’ll typically need:
- At least 20-30% of the purchase price as a down payment
- Additional working capital for immediate improvements and contingencies
- Strong enough credit to secure financing for the remainder
The good news is that laundromats are considered relatively stable businesses by many lenders, with SBA loans frequently available to qualified buyers at favorable terms.
Time Commitment
While laundromats are often described as “passive” investments, that’s not entirely accurate. Even the most automated, well-established laundromat requires regular attention. In my experience, expect to commit:
- 10-15 hours weekly for a fully attended operation
- 5-8 hours weekly for a partially attended model
- 3-5 hours weekly for an unattended, coin-only facility
These hours typically involve collection, equipment maintenance, vendor management, and occasional customer service issues. The semi-passive nature means you can schedule these responsibilities around other commit