# Path to $30k/mo Net — Two Routes

Goal: ~$30,000/mo net in Aaron's pocket = **$360,000/yr take-home**, minimal work, ideally with an inheritance ($1M–1.5M) as fuel. This doc compares the two honest ways to get there.

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## The core number

$30k/mo net = $360k/yr **after** debt service and **after** paying staff.
- **All-cash on a business:** the business itself must throw off ~$360k/yr SDE (cash flow).
- **Leveraged:** it must throw off ~$450k+/yr to cover your $360k *plus* the loan.

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## ROUTE A — One trophy laundromat (Aaron's "less is more" preference)

Buy a single high-volume store doing **~$360k+/yr SDE**, mostly cash from the inheritance.

**What it looks like:** ~$1M–1.5M/yr gross, 5,000+ sqft, 80–120+ machines, big wash-and-fold or commercial accounts. Sells for **$2M–4M**.

**The math (illustrative, $2.5M trophy at $400k SDE):**
- All-cash $2.5M → $400k/yr = **~$33k/mo**, zero debt, fully passive. Needs ~$2.5M (inheritance + a little financing).
- $1.5M down + $1M SBA loan (10yr, 9.25%) → debt ~$152k/yr → ($400k − $152k)/12 = **~$20.7k/mo**, and you keep $1M in reserve.
- $1.5M down + $1M seller note (15yr, 7%) → debt ~$108k/yr → **~$24.3k/mo**.

**Pros:** one lease, one staff team, one location to visit = genuinely simpler and the most passive. Hits the goal in ONE acquisition.
**Cons:** big check ($2–4M); you MUST verify the cash flow is real (sellers inflate the big ones most); all eggs in one lease/neighborhood; few of these exist in the corridor.

**Candidates in our pipeline (flagged 🏆 on the dashboard):**
- **Oceanside $1.97M** — business-only; IF cash flow is ~$350–400k as the price implies, near-cash it clears ~$28–33k/mo. The 295-unit Jefferson Ocean Creek opening across the street could push it past $30k. **Verify the tax returns — this is the #1 single-location test.**
- **Long Beach $3.25M** (mat + property, net ~$200k claimed) and **LA $2.95M** — bigger tickets, out of the home corridor, useful comps. Net $200k = ~$17k/mo, so these likely fall short of $30k solo unless cash flow is higher than stated.
- **San Clemente:** no store this large. Laundry Basket South is the only local one with any scale, and its numbers are 15-yr stale + it's a $4–5M mixed-use real-estate deal. Long shot, but the dream "walk to a $30k/mo asset in your home town" scenario — worth a relationship call to Jeff.

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## ROUTE B — Portfolio of 3–4 smaller mats (leveraged roll-up)

Use the inheritance as **down payments across multiple locations**, building to $30k/mo over 3–5 years.

**The math (illustrative):** 3–4 mats each netting ~$150–200k SDE, bought at ~20–30% down, each clearing ~$6–9k/mo after debt. Stack them → $30k/mo. $1.5M funds ~3–4 down payments + reserves; controls $3–5M of laundromats.

**Sequence:**
1. **Deal 1** — meaningful down to clear $5–10k/mo + de-risk. *Build the systems here:* attendant staff, remote monitoring, a manager. This proves you can run it hands-off.
2. **Stabilize** (~6–12 mo). You're now a proven operator — lenders favor repeat buyers.
3. **Deals 2–4** — fund with remaining inheritance + Deal 1's cash flow + your track record. Compound to $30k/mo.

**Pros:** higher total return on the inheritance (leverage); diversified across locations/leases; each loan paydown flips more cash to you over time; smaller individual checks = more deals to choose from.
**Cons:** more complexity (multiple leases, staffs, equipment sets); needs a roving manager to stay "minimal work"; built over years, not one move.

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## Honest comparison

| | Route A — One trophy | Route B — 3–4 portfolio |
|---|---|---|
| Time to $30k/mo | One acquisition | 3–5 years |
| Capital needed | $2–4M (near-cash) | $1.5M as down payments + reserves |
| Complexity / work | Lowest (one site) | Higher (multi-site + manager) |
| Risk | Concentrated (one lease) | Diversified |
| Capital efficiency | Lower (cash locked in one) | Higher (leverage) |
| Fits "less is more" | ✅ Yes | ❌ No |
| Availability of deals | Rare (few trophies) | Common (many small mats) |

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## Recommendation

Given the inheritance + the "less is more" preference, **lead with Route A: hunt for the one trophy store and verify its cash flow.** Oceanside is the first real test. If a verified ~$350k+ SDE store turns up at a price the inheritance can mostly cover, that's the cleanest path to $30k/mo with minimal ongoing work.

**But keep Route B as the fallback** — trophies are rare, and if none materialize, a disciplined 3–4 mat roll-up gets you there over a few years. Deal 1 in either route should be a healthy-down, cash-flowing mat that teaches you the operation and the hands-off systems.

**Sophisticated hybrid:** buy a trophy *cash* to win it at a discount (cash + speed gets sellers to cut price), then refinance to pull capital back out and either bank it or seed Route B. Best of both.

**Caveats:** not financial/tax advice — confirm with a CPA, especially how the inheritance arrives (cash is tax-free to you in CA; an inherited IRA is not). Don't commit to deals contingent on money not yet in hand. "Minimal work" is true *after* a store is dialed in, not during acquisition/ramp.

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## What the dashboard does now
- 🏆 **$30k-solo flag** on any listing big enough to clear $30k from one location (or "possible trophy — verify" when the price implies it but cash flow isn't disclosed).
- **"Show only $30k-solo candidates"** filter in the For Sale deal modeler.
- Daily watch + Dana's call priorities re-pointed to surface the big $300k+ SDE / $1M+ gross stores first.