Great margins, solid cash flow… but the lease can change everything.
This self-service laundromat in Manhattan is listed at $795K, generating about $610K in revenue and $265K in cash flow.
It’s also absentee-run with staff in place, and has a stable base of repeat customers.
At first glance, this looks like a very strong deal.
And when you run the numbers, it mostly holds up.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $149K per year.
That’s strong for a deal at this size.
Why This Looks Good
This deal checks most of the boxes.
- Above-average margins: 43% vs ~36% industry average.
- Fair pricing: 3.0x multiple, below ~3.7x industry average.
- Strong DSCR: 2.28 provides solid cushion.
- Fast payback: Down payment recovered in well under a year.
- Absentee setup: Staff handling day-to-day operations.
On paper, this is a very clean deal.
The One Thing That Can Break It
The lease.
This business is paying nearly $15K per month in rent in Manhattan.
That’s about $180K per year — one of the largest expenses in the entire business.
- Rent increases: Even small changes can wipe out margin.
- Lease renewal risk: Terms may not stay favorable.
- Location dependency: You can’t move a laundromat easily.
- Margin sensitivity: High fixed costs amplify risk.
If that lease changes, the entire deal changes with it.
Why This Matters More Here
Laundromats are extremely sensitive to fixed costs.
The model works because:
- Machines are paid off
- Labor is minimal
- Revenue is consistent
But when rent is this high, it becomes the dominant variable.
And that’s where risk concentrates.
What You Need To Verify
This deal lives and dies on the lease terms.
- Lease duration: How long is remaining?
- Escalation clauses: How fast can rent increase?
- Renewal options: Are terms locked in?
- Landlord relationship: How stable is the situation?
Everything else in this deal works.
This is the one variable that can break it.
BizHub Verdict
This deal scores an 8.4 / 10.
Strong margins, solid pricing, and good cash flow.
But the lease risk needs to be fully understood before moving forward.
Great deals don’t just cash flow — they stay stable over time.
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