Quote:
Originally Posted by studiobtm
At first glance this looks like a pretty good opportunity to me.
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I agree, at first glance it looks pretty good, but I have several concerns which the op needs to think about
Quote:
Originally Posted by cazelais
There are 25 units. Mostly single people. Three units have portable washing machines in their apts.
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How many washers/dryers are needed for 25 units? I cant imagine 1 of each being adaquate, so look at other similar sized buildings and ask them how many they have. I might guess 3-4 of each are needed because no one rushes to do laundry. This brings the cost upwards of $10K. (I still think at $10K it could be a good deal, so lets continue)
Quote:
Originally Posted by cazelais
I have known my landlord for six years. We take care of his building and live in it as well of course.
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The initial conserns begins here.
The landlord offered to pay the utilities, but for how long? Under what terms? What happens if/when the landlord decides the water bill is higher than expected? I know, you are a friend of theirs, but that doesnt answer the question.
Who pays for repairs, or vandalism? You own the machines, you would be liable, but how long can you afford to do this if it happens 3-4 times, or to all of the machines at once?
What happens if the washing machines flood? Will the landlord, i.e. your friend hold you liable for repair costs?
If the building burns down, or the machines end up missing, will you be reinbursed for the losses?
What if the landlord sells the property, dies, or you get evicted? Nothing forces the new owner to keep the agreement in place, after you just renovated the room at your cost.
My questioning isnt to scare you out of doing this, it does sound like at initial viewing, it makes economic sense, the goal is to get you to think about the what ifs, and if you decide to do this, do it properly and consider it a business.
If you want to cut out the costs and risks, there are companies out there that will install washer/dryers and take care of the liabilities and the costs of installing them, and split the revenue 50/50. You could arrange some sort of deal to return all quarters with a red paint mark on them so you can get free laundry, and the building owner would cover their costs.