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Revenue from water usage
- Thread starter keniniowa
- Start date
ken, the water bills are public record, anyone can go to the water dept and request them. you should be able to figure what this wash does without records. Compare to your self serve bays in Vinton. In a smaller town, I would bet that one bay avgs. 1000/ mo. and the second bays avgs. 750/mo. These are probably the high end estimates for a town of less than 1000 people.
that figures to approx 20,000 per year gross, at best. In a small town, land is not very valuable. Three times gross is the most you would want to pay for a wash in this situation.
example:
20,000 less 2000 for property tax, less 1600 insurance, less 7800 debt service, less 3000 natural gas, less 2500 water, sewer, elec.. This leaves 3000 for repairs, maint, chemicals, and your time to go check the place once every few days. Not much profit, but you would have some tax benefits, being able to write off a loss.
What is the current asking price? Is the station included, or just the wash building?
that figures to approx 20,000 per year gross, at best. In a small town, land is not very valuable. Three times gross is the most you would want to pay for a wash in this situation.
example:
20,000 less 2000 for property tax, less 1600 insurance, less 7800 debt service, less 3000 natural gas, less 2500 water, sewer, elec.. This leaves 3000 for repairs, maint, chemicals, and your time to go check the place once every few days. Not much profit, but you would have some tax benefits, being able to write off a loss.
What is the current asking price? Is the station included, or just the wash building?
Made an offer on the wash today. Was a little concerned I'd upset the seller, but it was all cordial. Still have hopes that when they can't sell it they'll get back with me.
Either way it wasn't a waste of time. Him not readily giving me info made me go look. I was unaware how much is public knowledge and how easy it is to find.
I got revenue estimates from four different sources(counting my head and Waright). They were all close. I've only bought the one wash and knew the seller well enough to trust what he told me. Surprises me that in this economy people think they can spout blue sky and not have it fact checked.
Talked with my banker before I made the offer. He was fine with what I told him, my projections and how it was going to work. But he said there was no way they'd loan on it to someone that wasn't already in the business without prior year's documentation.
Like I said, learning experience if nothing else, thanks for the input.
Either way it wasn't a waste of time. Him not readily giving me info made me go look. I was unaware how much is public knowledge and how easy it is to find.
I got revenue estimates from four different sources(counting my head and Waright). They were all close. I've only bought the one wash and knew the seller well enough to trust what he told me. Surprises me that in this economy people think they can spout blue sky and not have it fact checked.
Talked with my banker before I made the offer. He was fine with what I told him, my projections and how it was going to work. But he said there was no way they'd loan on it to someone that wasn't already in the business without prior year's documentation.
Like I said, learning experience if nothing else, thanks for the input.
