This laundromat is completely brand new, but is it actually a good buy?
It’s listed at $2.95 million, with $421K in cash flow on about $890K in revenue.
And the listing keeps emphasizing things like brand new equipment, absentee ownership, long-term lease control, and infrastructure-style cash flow.
Sounds great.
But when we run it through the BizHub calculator, the numbers completely change the story.
After loan payments, you’re left with only about $84K a year in cash flow.
But here’s the real kicker.
This deal doesn’t qualify with only 10% down because the DSCR falls below lender minimums.
To make the SBA debt work, you’d need to put down almost $900K — or nearly 30%.
You’re taking on nearly $3 million of purchase price risk for returns that barely justify the equity.
Now to be fair, the margins are strong at about 47%, and the equipment is basically brand new.
The lease structure is also unusually long for a single laundromat location, with roughly 30 years of total site control.
And because the store was built from the ground up in 2024, there’s likely very little near-term capital expenditure risk.
Which is probably why they’re trying to command a 7x cash flow multiple.
But laundromats are usually valued as stable cash-flow assets — not venture-style growth stories.
And this business has almost no long-term operating history.
The BizHub score lands around a 3 out of 10.
Nice asset. Probably terrible buy at this price.
If the numbers only work when you bring nearly a million dollars down, the valuation is the problem — not the business.
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