Three locations, strong story… but the math completely breaks.
This 3-location laundromat package is listed at $4.5M, generating about $1.76M in revenue and $550K in cash flow.
It’s marketed as absentee with newer equipment, multiple locations, and delivery infrastructure.
Sounds great — until you actually run the numbers.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Reality
At a normal 10% down payment, this deal doesn’t even qualify for SBA financing.
To make it work, you need to bring nearly $1.8M upfront.
The Real Problem
Even after fixing the structure… the returns are terrible.
- Only $110K cash flow after debt
- 16.5 year payback period
- ~6% cash-on-cash return
- Massive capital required
You’re putting in $1.8M… to make $110K.
That’s not investing — that’s locking up capital.
The Valuation Problem
This is where it completely falls apart.
- 8.18x multiple
- Industry average ~3–4x
- Seller explicitly pitching a 9x deal
They’re not just overpriced — they’re telling you they are.
The Absentee Trap
The listing leans heavily on “absentee.”
That’s exactly why it’s priced this way.
But here’s the reality:
- Absentee doesn’t justify 2x the multiple
- Systems don’t double value
- Brand doesn’t double value
You’re paying for a story — not the economics.
Industry Context
Laundromats are usually strong assets.
- Low default rate: ~1.6%
- Stable demand
- Predictable cash flow
But even great industries can have terrible deals.
What This Really Is
An average business priced like a premium asset.
- Decent operations
- Normal margins
- Extreme overvaluation
There’s nothing here that justifies the price.
BizHub Verdict
This deal scores a 3.0 / 10.
Not because laundromats are bad — but because this one is priced far beyond reality.
You’re not buying a deal — you’re funding someone else’s exit.
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