Coin Washer & Dryers For Residential Buildings
Hello, I am a owner and building manager and I am considering installing coin operated washer and dryers in the basement in one of my buildings. I have never done this before and wondered if anyone can shed some light on the companies that supply, manage this type of service? How much does it cost, does anyone have any negative or positive experiences doing this. Any suggestions would be greatly appreciated.
Most companies provide and service the equipment for 50 % of the revenue, and some will even provide cleaning of the laundry room, of course for an additional fee. We have always found it more profitable to buy our own equipment and manage the laundry room ourselves.
Can anyone give me good companies to contact?
Great information in the thread anyone have other input? I am partnering on a 50-75 unit complex and was looking for information on this subject.
I would take the
Potential Gross Income
(-) expected Vacancy loss
(-) less expected Credit loss
(=) Effective Gross Income
then from there subtract expense items such as
(-) Utilities (Oil, Electric, Gas)
(-) Management Expenses
(-) Taxes
(-) Insurance
(-) Maintenance
(-) Contract Cleaning
(-) Supplies
= Net Operating Income (NOI)
then deduct
(-) Leasing commissions
(-) Capital replacements
to get Available Net Operating Income (ANOI)
Although it is not the greatest method on earth but it sure is the simplest I would just cap the NOI and figure out that the approximate value is.
NOI/Capitalization Rate to get a "value"
However when deriving your cap rate remember that 10 yr note is now about 5.00% and to factor in the risk and illiquid nature involved in the specific real estate that you anticipate purchasing.
rule of thumb...expenses approx. 35% (w/o utilities) + NOI at a 10 cap rate (unless you are in Ca. or other areas where they are shooting craps on future appreciation... Roboxking...are you sure about that 5% rate...if so, explain how one would achieve that...regards, CWal
5.00% is the safe rate. Treasuries.
So 5%+Risk Premium
thank you...I misread your posting re: the 5% for 5% interest rate...(we all wish...)...regards, cwal
A cap rate should be derived by a particular investor for a particular deal. For instance factors such as the loan ratio, equity ratio, annual constant, equity yield rate, depreciation or appreciation should be taken into consideration.
that 3% include tax breaks? if so really crazy