Would a Laundromat Be a Good Investment?

I'm at the laundromat this morning because of the construction going on in my house... and I’m watching the guy empty all the coin bins. Each machine has dozens of quarters in it. Made quite a racket as he was dumping the change into a bag then through a mechanical counter.

So, thinking out loud here:
A cheap commercial washer probably costs around $500. At $2 (or more) per load, the machine pays for itself in 250 washes. With minimum maintenance, the machines will last for a decade or more. (The machines I'm using are AT LEAST that old.) The dryers probably run about $1000.

I did three loads. $6. That's just the washing. The drying was another $4.50. If each person who walks in spends $10 (and that may be a low average), it doesn't take long to make some decent cash.

Rental space   $2500/mo
Electricity     $500/mo
Water           $500/mo
Maintenance     $500/mo
Total          $3500/month

20 people/day * $10/person * 30 day/month = $6000/month

That's about $2000 to $2500 each month in profits. Nearly $30,000 per year. You have to admit, that's not a bad side income for not a lot of work.

The initial investment, though, is pretty steep. The laundromat I’m in now has 34 washers and 18 dryers. (Some of the washers are front-loading, heavy-duty machines. But they also get $3.75 per load.) To get started, you're probably looking at about $45,000 in equipment. But again, it's really not going to take long to get that money back... and the profits roll in after that.

There are also a few vending machines with laundry supplies, sodas and snacks. Plus a video game machine. Those are nearly pure profit... and the machines will last almost indefinitely.

Cleaning will probably cost about $500/month. And morons will probably damage some of the machines. But even when you have to replace a machine, you're still going to be making money.

The biggest issue would be finding the right space in the right location. You need to be in a residential area. Preferably with lots of rental property nearby. An area around campus would be ideal. You want a place in a decent neighborhood, though, so you have better, more respectful users (fewer morons to damage the machines). The more you have to spend repairing equipment, the less money you're making! Duh!

And if you went a step further and put in a bar so people have something to do while they wait for their laundry, they'd spend even more!

Wonder if it would be worth buying an already-established facility...? Would the price make it worthwhile? What if you bought the building... could you afford the mortgage payments? Does business change based on the seasons? It would surely change around campus depending on whether classes were in session.

Okay. The guy just walked out of here with two big bags of coins. They are making money...