You do not see this often. A laundromat that actually makes sense on paper and still leaves room for error.
This laundromat is listed at $525,000, generating about $244,000 in cash flow on roughly $244,000 in revenue.
At first glance, the numbers almost look too clean. Revenue and cash flow being identical is unusual, and the reported 100% margin is almost certainly inaccurate or overstated.
So instead of focusing on that, the real question becomes: does the deal still work when you ignore the noise?
Deal Snapshot
Now let’s run it through a standard SBA financing scenario.
SBA Scenario (10% Down)
After debt service, the buyer is left with about $166K per year. That is extremely strong for a business at this price point.
What Stands Out
- Low valuation: At about 2.1x cash flow, this is well below typical laundromat pricing.
- Strong post-debt income: Roughly $166K annually, which provides real cushion.
- Simple operations: Laundromats are relatively low labor compared to other service businesses.
- Low default rates: Around 1.5%, making the industry attractive from a lender perspective.
- Margin for error: The deal is not relying on perfect execution to work.
Potential Risks
- Questionable financials: A reported 100% margin is unrealistic and needs verification.
- Equipment risk: The age and condition of machines is critical. Replacements are expensive and can destroy returns.
- CapEx exposure: Even a few machine replacements can significantly reduce real cash flow.
- Revenue consistency: Buyers need to confirm that revenue is stable and not inflated.
- Utility and maintenance costs: Water, electricity, and repairs can vary and impact margins.
BizHub Verdict
This deal scores a 7.9 / 10. Not because it is perfect, but because it is priced in a way that gives the buyer real breathing room.
This is what a rational deal looks like. The numbers work, the valuation is reasonable, and there is enough cushion to absorb mistakes. That is rare in today’s market.
Just make sure the equipment checks out. In laundromats, that is everything.
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