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Physical

Laundromat

The original passive income machine

Laundromats provide self-service washers and dryers to the public on a pay-per-use basis. They serve a consistent need — everyone needs clean clothes — and can be operated with minimal staff. Many owners add wash-and-fold or pickup/delivery services to boost revenue.

Avg Revenue

$350K

Profit Margin

27%

Acquisition Multiple

2x - 3x

Startup Cost

$200K - $500K

Difficulty

2/5

How It Works

Customers use coin or card-operated washers and dryers. Revenue comes from machine usage fees, plus optional services like wash-and-fold, dry cleaning drop-off, and vending. Most laundromats operate 14-18 hours daily with an attendant or fully unattended.

Revenue Range

Low End
$200K
Typical
$350K
High End
$600K

Pros

  • +Recession-proof demand — laundry is a necessity
  • +Semi-passive with low labor needs
  • +Cash-flow positive from day one when buying existing
  • +Multiple revenue streams (machines, wash-fold, vending)

Cons

  • -Equipment replacement is expensive ($5K-$15K per machine)
  • -Location is critical — bad location means low revenue
  • -Utility costs (water, gas, electric) eat into margins

Best For

Semi-passive investors who want a proven, recession-resistant model

Operating Costs

Utilities (water, gas, electricity) are the largest ongoing expense, typically 25-35% of revenue, plus rent, insurance, and occasional attendant wages.

Where to Buy

Quick Facts

Category
physical
Difficulty
2/5
Acquisition Price
$700K - $1.1M

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