This laundromat looks good - need advice
I`m thinking about buying a laundromat that has come up for sale in my area. The owner is moving out of state and he is selling like 4 or 5 businesses to do it, so he must have a pretty good reason. He agreed to carry a partial note on the business, which, I think, is a very good sign. I`ve got a list of the normal questions (i.e., when does the lease end, how old is the equipment, etc.). My only question is about his reported profits. He claimed right around $10,000 on his Schedule C in `03, $15k in `04, $20k in 05, and now $30k in `06 ($53,000 gross sales). The facility has about 30 washers and 15 dryers. This is the only laundromat in the small town (pop of around 5000), and it is the only laundromat within a 10 mile radius (population maybe close to 25-30,000). There are about 8 fourplexes immediately accross the street, as well as a small trailer park with about 15 trailers. The space is rented from a grocery store that shares the premises. I`m hoping to hear from somone who has more experience in this industry. Does this level of sales seem reasonable for the situation? Thanks for the help!
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