I'm a business broker and about to list a large laundromat for sale.
The "industry insiders" have a strong understanding of where equipment is in terms of its useful life. A lot of new entrants to the laundry business will see the cash flow over the prior few years and disregard that in the near term, all equipment must be replaced.
If a new competitor opens up nearby, they'll operate at a loss for several months trying to gain market share. You'll either have to price-match or ride out their startup phase.
If you don't have basic mechanical skills, as equipment ages, the expense to outsource all repairs puts many "passive income" investors in the red.
Your marketing efforts have to be non-stop for new commercial clients. The customers are all price-sensitive, and for various reasons, you'll lose accounts constantly. You'll never be able to let your foot off the gas and stop seeking new accounts, or business will go into a downward trend.
The employees at many of these laundromats may not have legal work authorization. If that makes you uncomfortable, then just be realistic about your ability to get workers at a price that's competitive to those not using legal workers.
Look up IRS form 8594 for tax purposes and make sure in your purchase agreement it states how it'll be completed.
Use a closing attorney to run lien searches against the assets you're buying, verify no delinquent taxes, and get a proper bill of sale.
