Hello everyone,
I am currently looking at a wash that has a 2 bed 2 bath apartment above it, I don't feel this adds any value to the wash. I am curious what others in the industry think.
Details on the wash are as follows
Asking price $650,000.
Days on market 784
Built 1998
Gross 90,000 ish
14,000 car per day
Towns population is 7200, with a town 10 miles away at 50,000
median income is only 32,000, the larger towns median income is 45,000
2 bed 2 bath 1984 sq/ft apartment with large balcony
1 rollover touchless Mark VII (probably original)
4 SS bays, One that was built to add another rollover (cashier pedestal and wiring conduit)
4 Vac stations
1 Shampoo station
1
vending machine with car products
1 Pop machine
0 competition, not even another SS
Wash prices are $5, $6, and $7 dollars
Using a gross multiplier of 3- 4.5 would suggest a value of 270K-405K. They say the apartment rents for $800 a month, but its not currently rented. I think a person would be lucky to get $500 a month out of it. I personally see it as a liability, Not an asset. I haven't contacted the seller yet because I think it is too far over priced to consider. The seller will carry, with 145K down, because he knows the buyer can't take it to the bank. (according to the realtor)
Overall it is a nice wash, well built but it needs better curb appeal and the touchless needs updated as it does not do a good job,
soap does not get rinsed off and the dryer does not come close to drying.
Any opinions on the Wash are welcome, and thoughts on the apartment would be appreciated.
Andy
