Coin Laundry Income on DSCR Multifamily Properties

Every tenant needs to do laundry. In multifamily properties without in-unit washers and dryers, that need becomes your income stream. A properly set up coin or card-operated laundry room on a DSCR-financed multifamily can generate $200–$800/month in ancillary income with minimal management.

It's not glamorous. It's not complicated. It just works.

The Economics of On-Site Laundry

On-site laundry rooms are one of the oldest ancillary income plays in apartment investing. The economics haven't changed much, but the technology has improved significantly.

Revenue per machine:

• Washer: $2.00–$3.50 per load (market-dependent)
• Dryer: $1.75–$3.00 per load
• Average loads per tenant per week: 2–3
• Revenue per tenant per month: $15–$25

Revenue by property size:

The general rule: one washer and one dryer per 6–8 units. Properties with families need more capacity — bump to one set per 4–5 units.

Operating costs:

Laundry rooms aren't free to run. Here's what to budget:

• Water: $15–$25 per washer per month (high-efficiency models are on the lower end)
• Electricity/gas: $10–$20 per dryer per month (gas dryers cost roughly 50% less to operate)
• Maintenance: $50–$100 per machine per year (belt replacements, coin mechanism cleaning, drain maintenance)
• Insurance: Minimal — typically covered under your existing landlord policy
• Detergent/supplies vending (optional): $20–$50/month revenue from a small vending dispenser

Net income example for an 8-unit property:

• Gross laundry revenue: $500/month
• Water cost (2 washers): -$40
• Energy cost (2 dryers): -$30
• Maintenance reserve: -$15
• Net laundry income: $415/month ($4,980/year)

On a property where the total DSCR-financed PITIA is $3,200/month, that laundry income represents a 13% cash flow boost. Not bad for a room you were already heating and lighting.

Equipment Options: Buy, Lease, or Revenue Share

You have three paths to get machines in your laundry room. Each has different economics.

Option 1: Buy your own machines

• Cost: $800–$1,500 per commercial washer; $700–$1,200 per commercial dryer
• Total for 8-unit property (2 sets): $3,000–$5,400
• Pros: You keep 100% of revenue. Machines pay for themselves in 8–14 months.
• Cons: You handle maintenance, repairs, and replacement. You need upfront capital.
• Best for: Investors who want maximum income and don't mind occasional maintenance calls

Option 2: Lease machines

• Cost: $50–$150 per machine per month
• Contract term: 3–7 years typically
• Pros: No upfront cost. Maintenance often included in the lease.
• Cons: Monthly lease payments eat into revenue. You may net only 40–60% of what you'd earn owning.
• Best for: Properties where you want zero maintenance responsibility and don't want upfront costs

Option 3: Revenue-share with a laundry company

• Cost: $0 upfront
• Your split: Typically 50–60% of gross revenue (you) / 40–50% (company)
• Contract term: 5–10 years
• Pros: Company provides machines, handles all maintenance and collections, installs card payment systems. Truly hands-off.
• Cons: You give up 40–50% of revenue. Long contract terms with early termination penalties. Company controls pricing.
• Best for: Larger properties (12+ units) where management simplicity matters more than maximizing every dollar

Companies offering revenue-share programs:

• CSC ServiceWorks (formerly Coinmach)
• WASH Multifamily Laundry Systems
• Caldwell & Gregory
• Local/regional operators (often offer better splits than national companies)

Which option wins?

For most DSCR investors buying 4–12 unit properties, owning the machines is the clear winner. The upfront investment is small ($3,000–$10,000), payback is fast (under 18 months), and you keep 100% of revenue going forward. Revenue-share only makes sense when you're buying larger properties and want completely passive management.

Setting Up a Laundry Room From Scratch

Some multifamily properties come with existing laundry rooms. Others need one built. Here's what's involved.

Space requirements:

• Minimum: 80 sq ft for 1 washer + 1 dryer + folding area
• Recommended: 120–150 sq ft for 2 sets with comfortable spacing
• Location: Ground floor or basement with access to plumbing and drainage
• Common conversions: storage rooms, unused utility areas, oversized closets, partial garage space

Infrastructure needs:

• Plumbing: Hot and cold water supply lines, drain connection (2-inch minimum). Cost to plumb a new laundry room: $1,500–$4,000.
• Electrical: 240V outlet for electric dryers, 120V for washers. Dedicated 30-amp circuit per dryer. Cost: $500–$1,500.
• Gas (if gas dryers): Gas line extension with proper shutoff valve. Cost: $300–$800.
• Ventilation: Exterior dryer vent for each dryer. Proper venting prevents fire hazards and is code-required. Cost: $200–$500 per vent.
• Flooring: Waterproof flooring (concrete sealed with epoxy, or commercial-grade vinyl). Cost: $300–$800.
• Drainage: Floor drain is strongly recommended for overflow protection. Cost: $500–$1,500 if one doesn't exist.

Total setup costs:

Payment systems:

The market is moving away from coins and toward cards and apps.

• Coin-operated: Traditional. Tenants need quarters. You empty coin boxes weekly. Simple but slightly annoying for everyone.
• Card-operated (stored value): Tenants load money onto a laundry card. You sell/reload cards. Reduces coin theft and is more convenient. Card systems cost $500–$1,000 to install.
• App-based payment: Services like PayRange, SpyderWash, or CSC Go allow tenants to pay via smartphone. Retrofit kits cost $150–$300 per machine. You can raise prices without mechanical changes.
• Hybrid: Accept both coins and app payments. Maximum flexibility for tenants.

App-based systems also give you real-time revenue tracking, usage analytics, and remote price adjustments. For a small premium in equipment cost, the convenience is worth it.

How Laundry Income Affects Your DSCR Deal

Like other ancillary income, laundry revenue generally isn't included in DSCR underwriting. But it has indirect effects.

Direct cash flow impact:

• Laundry income flows straight to your bottom line
• On an 8-unit property netting $415/month from laundry, your effective DSCR is higher than what the lender calculated
• This creates a buffer against vacancy or unexpected expenses

Property value impact:

Documented laundry income increases property value via the income approach:

• Net laundry income: $4,980/year
• At a 7% cap rate: value increase of $71,143
• At a 6% cap rate: value increase of $83,000

A $5,000 machine investment creating $70,000+ in property value is an exceptional return. This is particularly valuable when you refinance — the higher appraised value means more equity and potentially a cash-out opportunity.

Tenant retention impact:

Properties with on-site laundry rent faster and retain tenants longer than those without. According to the National Apartment Association:

• 94% of renters say on-site laundry is important or very important
• Properties with laundry facilities have 8–12% lower turnover rates
• Reduced turnover saves $2,000–$4,000 per unit in make-ready costs and vacancy loss

The laundry room doesn't just make money directly — it makes your entire property more competitive.

Common Mistakes to Avoid

Underpricing your machines

Check what local laundromats charge and price your machines 20–30% below that. Tenants will gladly pay $2.50/load to avoid driving to a laundromat that charges $3.50. Don't price at $1.50 out of guilt — that's leaving money on the table.

Ignoring maintenance

A broken machine doesn't just lose revenue — it frustrates tenants. Set a maintenance schedule:

• Monthly: clean lint traps, check hoses and connections, wipe machines
• Quarterly: inspect coin mechanisms, test drainage, clean dryer vents
• Annually: professional dryer vent cleaning ($100–$150), inspect supply lines for wear

Skipping the floor drain

Without a floor drain, a washer overflow or hose failure floods your laundry room and potentially adjacent units. Installing a drain costs $500–$1,500 during setup. Flood damage repair costs $5,000–$20,000. Do the math.

Using residential machines

Residential washers and dryers aren't built for the abuse of shared laundry rooms. They'll last 2–3 years in a shared setting versus 8–12 years for commercial units. The upfront savings aren't worth the accelerated replacement cycle and frequent repairs.

Forgetting about security

Laundry rooms with coin machines can attract theft. Mitigation:

• Install a security camera ($50–$100)
• Use heavy-duty coin vaults (standard on commercial machines)
• Switch to card or app-based payment to eliminate cash entirely
• Ensure the room is well-lit with a functioning lock (tenant-accessed only)

Scaling Laundry Income Across Your Portfolio

As you acquire more DSCR-financed multifamily properties, laundry income scales predictably.

Portfolio laundry income projection:

At 10 properties, laundry alone generates nearly $50,000/year. Combined with rental income, that's a meaningful acceleration of your portfolio growth — the laundry revenue from your portfolio funds an additional acquisition's down payment every 12–18 months.

Optimization over time:

• Raise prices annually: $0.25 increases every 12–18 months. Tenants absorb small increases without complaint.
• Upgrade to high-efficiency machines: New Energy Star commercial washers use 40% less water and 25% less energy. Operating savings compound over years.
• Add vending: A detergent and dryer sheet vending dispenser next to the machines costs $200–$400 and generates $20–$50/month in passive income.
• Track revenue per machine: Replace underperforming machines. If one washer consistently generates 30% less than others, it may have a cycle time or temperature issue driving tenants to competitors.

Frequently Asked Questions

Do DSCR lenders count laundry income when qualifying the property?

Most DSCR lenders focus on residential rental income from the appraisal. Laundry and other ancillary income typically aren't included in the DSCR calculation. Some portfolio lenders may consider it with documented history, but don't rely on it for qualification. The laundry income is bonus cash flow above what the lender evaluates.

Should I provide free laundry to tenants instead of charging?

In some upscale markets, "free laundry" is a competitive amenity that allows you to charge $50–$100 more in base rent. Run the numbers: if free laundry lets you increase rent by $75/unit across 8 units ($600/month), that exceeds the $415/month you'd collect in coin revenue — and it's simpler to manage. In workforce housing and B/C class properties, coin-operated is the standard and expected.

How do I handle machine breakdowns?

Have a repair contact on speed dial. Most commercial washer/dryer repairs cost $100–$300 and can be completed same-day or next-day. Keep a $500 maintenance reserve for laundry equipment. For revenue-share arrangements, the laundry company handles repairs — that's the main benefit of that model.

What about in-unit washer/dryer hookups?

If units already have hookups, adding in-unit machines (or allowing tenants to bring their own) may generate more rental income than a shared laundry room. You can charge $50–$75/month for units with washer/dryer included. However, in-unit machines increase water and maintenance costs and are harder to monetize if the tenant provides their own. Shared laundry rooms are more profitable per square foot.

Are there tax benefits to laundry equipment?

Yes. Commercial laundry equipment is depreciable over 5–7 years under MACRS. A $5,000 equipment purchase generates $714–$1,000/year in depreciation deductions. Under Section 179, you can potentially deduct the entire cost in the year of purchase if your total qualifying purchases are under the annual limit ($1,220,000 in 2026). Consult your CPA for specifics.

What's the minimum property size where laundry makes sense?

The break-even point is typically around 4 units. Below that, the revenue doesn't justify the setup cost and space allocation. At 4 units, expect $150–$250/month in laundry income — enough to cover a meaningful portion of one unit's PITIA. The sweet spot is 8–20 units where laundry income becomes substantial without requiring significant laundry room infrastructure.

The Bottom Line

Coin or card-operated laundry is the original ancillary income play in multifamily real estate, and it works just as well in 2026 as it did in 1986. The setup costs are modest ($3,000–$12,000 for most properties), the revenue is consistent and predictable, and the management is minimal.

For DSCR-financed multifamily properties, laundry income is the definition of bonus cash flow. It doesn't help you qualify for the loan, but it boosts your actual returns by 10–20% above what the lender underwrote. Every multifamily property in your portfolio should have a laundry room generating revenue — if it doesn't, you're leaving money on the table.

Buy the machines, set the prices at market rate, maintain them quarterly, and collect the income. It's simple, it's proven, and it compounds across every property you add to your portfolio.