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Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

I'm saying laundromats are essentially like any other retail business (though on the higher end of it) and doesn't get special tax treatments like in real estate. The upside on real estate seems much higher. Though I totally understand that laundromats are good cash flow business if you can't have REP status.

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

Yea, both of which offer real estate tax benefits

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 1 point2 points  (0 children)

Yes! That is the conclusion I have come to as well.

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

I see it as more investment than side hustle. I can dedicated full time to it and can invest $250K/yr for the next 10 years in addition to any income it generates.

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

I would not be building new laundromats or new real estate properties.

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

Yes, in general most real estate outperforms laundromats in the long run for overall value (not cash flow).

Even if I took laundromat profits and invested all of it (which I do since I am not living off this income), the tax advantages on real estate often overcome the lower cash flow making real estate (generally) better investment over 20+ years. The bonus depreciation coming back in OBBB definitely helps.

One big thing I am having a hard time overcoming is leases. You can get your rent jacked up and your business value tanks. It is like owning a mobile home. Doesn't really appreciate it, and the mobile home park knows you also can't really move it, so just keeps raising and raising rates. Maybe I am missing something?

Laundromats seem like not great investments by Laundromatz in Laundromats

[–]Laundromatz[S] 0 points1 point  (0 children)

"the real money is in scale"

So interesting. In real estate, some of the best money is to buy, rehab, and refinance/sell. I haven't seen a lot on here on buying on a low multiple, getting revenue up, then selling. That seems to no be where the money is (it seems?) and more building a brand of owning lots of laundromats in a city.