Thought on Car Wash Evaluation (SF BAY AREA)

[JamalM510]

Looking into buying a SS wash on leased land. Property owner built it in 2020. All new equipment. 5 large vehicle wash stalls. Token based systems. Also has 3 double-system vacuums for a total of 6 stations. There is a money changer system on site and some vending machines. Claims equipment is $250k alone

purchase price: $185k (down from $250k)
Yearly revenue: $119k
Rent from taco truck on site: $3k/year
Yearly expenses: $23k

Operator is currently the landowner so he doesn’t pay rent. Buyer would pay $4500 rent and to be negotiated. Rough part of Oakland CA. Hours 8-8.

Fees have not been raised since inception. Rent figure scares me but thinking if I can get it down to $3000-$3500 might be interesting

Thoughts on value? (I know 99% of the forum is “never buy wash on leased land, buy the land”. I don’t have $3m to buy land in the Bay Area and wanna break into this business. Worth looking into or avoid?

 

[OurTown]

Using current asking numbers you are only talking about $45K/year net. IF you could get the rent to $3K/mo AND raise the rate 20% then it almost might be worth it. The lease terms would be critical though. You might be better off just getting a job at a car wash or finding another way to get into the business.

 

[washnshine]

Rough part of Oakland CA.

Deal breaker for me.