Need opinion on potential S/S purchase from the pros

[Bubbles2406]

Hey everyone ,

Looking at buying a 4 bay S/S wash on the main road of a busy town. The wash does around 130-140k a year , total expenses will land around 80k. The purchase price is $400k , does this seem like a reasonable ROI ?

thanks in advance

 

[MEP001]

does this seem like a reasonable ROI ?

It could be. There are always variables. He could be lying about the income, there could be another wash about to be build across the road, there could be a problem with the land like gas tanks buried that will need to be dug up that could cost a couple million if they've been leaking.

 

[OurTown]

Seems reasonable on the surface but like Mep said many variables to look at. Thoroughly check the income. Do the expenses include labor? How is it ran? Could you run it better therefore increasing income or is it pretty well topped out? Are there already express exterior washes nearby?

 

[Waxman]

Are these income and expense numbers verified by tax returns?