Originally Posted by Hotrocket

My family was in the Dry Cleaning and coin op Laundromat business for over 25 years.
Yes it can be a very profitable business, but there are many things to consider...
1st - You have have greatly underestimated the amount of capital it will cost to get started..quality commercial washers and dryers are signifigantly more expensive than your typical home units. depending on the total number of units you plan on purchasing, 40 - 50k might just barely cover that.

2nd - The plumbing will cost quite a bit more than just a couple thousand, you have to have a large volume water supply/main/meter just to function, then you have hot and cold water supplies with cut off valves for every single unit, drainage which will entail cutting the concrete slab for installation, gas supply for each dryer (you want to go gas because electric units will eat you alive in utility costs), you will also require a small boiler unit, a couple hot water heaters wont cut it, the boiler also requires a gas and electric supply.

3rd - Electrical work will be considerable, you have power to each unit, plus it will generally require a signifigant upgrade from your standard retail store type system.

4th - Change machines - quality units will run around $600-1,000 each or more, and there is something to consider, every time they change the design of our currency, expect to pay for upgrading them to accept the new notes.

5th - It's a huge mistake not to have an employee there during the hours of operation, several things to consider, the 1st is vandalisim and theft, that alone could cost you a fair amount of money to repair/ replace coin changers, slides and the coin boxes. 2nd is the dryers will require daily cleaning of the lint traps. 3rd Washers will frequently overflow, drains will get clogged and hoses break. If any of these things happen in an unattended facility and they flood, you might not know it for hours and not only will it cost you $ for the excessive water loss, if it floods the neighboring businesses you could be in for a big expense in clean up costs, and insurance may or may not cover all of these "accidents". 4th the facility will require frequent mopping and sweeping or the floors, and cleaning of the restrooms.

6th - Fixtures..you will have to have folding tables, rolling laundry carts, interior and exterior signage...etc.

7th - Forget about being open 24 hours, you will do next to no business from midnight to 6-7 am. its not worth the electric utility costs alone.

The reality of the situation is expect it to cost you in excess of 100K minimum, also you are much better off in a purpose built facility ie: new retail location that is designed from the ground up to be a laundromat. you have the right idea wanting to be located in a lower income area, but thats not all to consider in you location decision making process, you want to be in an strong area of new or recent construction/ development of low cost homes, rental units and apartments. Older established neighborhoods will not have the customer base you are seeking.

I could go on and on..but this gives you something to think about anyway

Good Luck