Coin Car Wash including property located at Los Angeles County.
1 ) Annual Income : $268,000. (Monthly Average : $22,350)
2 ) Annual Expense : $76,200. (Monthly Average : $6,300)
1. Utility : $17,400.
2. Chemical : $7,200.
3. Payroll : $20,400. (Current owner has another job)
4. Insurance : $9,600.
5. Property Tax : $15,600. (Need to consider it after purchase)
6. Miscellaneous : 6,000.
3 ) Net Profit before debt service : $191,800.
4 ) Return on Investment : 8.6 % annually at $2,230,000.
5 ) SBA Loan possible with 30 % down payment.
6 ) Loan Payment : Little less than $110,448. annually.
7 ) Cash Flow : $81,352. annually
8 ) Return on Cash : 12.1 % after loan payment.
Monthly sales volumes have been increasing steadily and will be on the rise due to minimum wage increase. Constructing coin car wash seems very difficult, in contrast with the rapid car increasing on the street. It may give buyer some potentials in the future.
Cost approach to build up Coin Car Wash.
1 ) Land : Approximately $1,000,000. for the proper land over 18,000. Sqf. to build up coin car wash.
2 ) Constructional Cost to build up: Totally $900,000. estimated that can be allocated for equipment, $300,000., build up cost for bays, $300,000. & constructional cost for landscaping, other requirements asked by City, $300,000.
3 ) Period for completion can take 2 years approximately to construct coin car wash, and demanded conditional use permit from City, if land is C2 zone.
So the evaluation of this coin car wash, $2,240,000. can be vindicated with constructional cost analysis.