PassiveScore

Score, underwrite, and track passive income business acquisitions — laundromats, self-storage, and vending routes. Built on the same conservative underwriting bar as HostScore.

DSCR ≥ 1.25x required 70% stress + 1.5% rate shock Seller carry near-mandatory Revenue gate before diligence

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Business Type

Select the type of passive income business you're evaluating

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Quick Scan

Paste key listing details below — auto-fills the scorecard and adds to pipeline

Business Name / ID

Location

Asking Price ($)

Stated SDE / Cash Flow ($)

Down Payment ($)

Seller Carry?

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Business Info

Business Name

Location

Asking Price ($)

Source / Listing ID

Scored By

Date

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Financial Underwriting

Enter verified financials. Values update live. Leave blank if unavailable.

Gross Revenue — annual ($)

Stated SDE / Cash Flow ($)

Annual Debt Service ($)

Purchase Price ($)

Cash Invested / Down Payment ($) Auto-fill: 10% · 20%

Seller carry status

SDE

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Target ≥ $80K/yr

DSCR

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Required ≥ 1.25x

Cash-on-Cash

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Target ≥ 15%

SDE Margin

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Target ≥ 25%

⚠️ Unverified seller SDE is not evidence. Require 2 years of tax returns + bank statements or processor data before advancing to diligence. DSCR must hold at 70% stressed SDE + 1.5% rate shock simultaneously.

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Debt Service Estimator

Calculate annual debt service — pushes result into underwriting above

Loan Amount ($)

Interest Rate (% annual)

Amortization Term

Financing structure

Equity injection / down

SBA 7(a) typically requires ≥10% equity injection

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Scoring Criteria

Drag each slider from 0 (poor/unknown) to 5 (excellent)

PassiveScore (weighted 0–100) 0

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Knock-Out Conditions

Check any that apply. One knock-out forces NO-GO regardless of score.

Score breakdown

PI Deal Pipeline

All 68 pipeline candidates (19 scored) · last updated 2026-07-29. Click any row to load into the scorecard. All SDE figures UNVERIFIED — verify revenue before LOI.

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Total tracked

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Advance

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Watch list

Open flags

#	Business	Type	Asking	SDE	DSCR (70% / shock)	Score	Stage

ℹ️ Next critical path: (1) Darrel/Lisa — URGENT: send approved outreach A (LM-10 NYLaundromats) and C (SS-15 RV Repair & Storage) — approved since Session 9, unsent; B (LM-14) on hold pending listing status. (2) ⚡ Claude: resolve F21 — browser-verify BizBuySell 2099163 (LM-34, Oakland Park Broward FL) against the original $600K/$195K CF/$335K carry profile. (3) Browser-verify VE-19 (BusinessMart #179621, SW FL snack route) — first vending candidate to clear the geographic gate. (4) Browser-verify LM-35, VE-20, SS-24. Pipeline: 68 candidates · 3 active Shortlist · 21 open red-team flags. Last updated: 2026-07-29 (Session 19 — automated sourcing scan). Do NOT contact any owner or broker without explicit approval.

🚩 Open Red-Team Flags

Flag	Scope	Status	Issue
F1	Project	OPEN	Capital funds only one deal — parallel sourcing risks splitting focus
F2	All candidates	OPEN	All SDE figures unverified — revenue gate not cleared for any candidate
F3	Project	OPEN	2025 SBA rule: seller notes on full standby required to count as equity injection
F5	Project	OPEN	Pipeline attrition severe — 10/13 original candidates delisted. Sweep every session.
F6	SS-15	OPEN	SS-15 "won't qualify for bank loans" — cause unknown. Hard blocker.
F7	LM-14	OPEN	LM-14 seasonal revenue unquantified — annual 70% stress may miss winter floor
F8	CW-9	OPEN	CW-9 Coleman MI — pop ~1,200 creates thin demand; Michigan seasonal weather constrains revenue; confirm unattended coin-op vs labor-intensive
F9	VE-16	OPEN	VE-16 Fort Myers vending — no specific listing ID confirmed; no financial data. Cannot score or advance without a live listing URL.
F10	LM-18	OPEN	LM-18 Clearwater — SDE $80K is 11% below $90K playbook sourcing floor. Passes DSCR stress test at 1.82x but flag for recalibration. Kill if SDE below $75K.
F11	SS-16	OPEN	SS-16 self-storage+apartments — "won't qualify for bank loans" pattern (same as F6) + $350K down exceeds ~$200K capital pool. Likely double KO — verify location and down payment before spending time.
F12	LM-21	CLOSED	LM-21 St. Pete FL — BizBuySell Pinellas County browsed 2026-07-08. 0 listings matching profile. Listing sold/delisted. LM-21 → DEAD.
F13	LM-22	CLOSED	LM-22 confirmed as BizBuySell 2510046 — separate from LM-14. Pipeline correction: RE NOT included ($360K biz only). Score revised to 42.
F14	SS-17	OPEN	SS-17 Berlin NH — recreational storage demand is seasonal (ATV/snowmobile/boat). NH winters limit boat/ATV usage. Verify NOI holds year-round before underwriting.
F15	SS-19	OPEN	SS-19 Broken Bow OK — WebSearch snippet mentioned "$350K down" (unverified). If confirmed, equals capital ceiling. Kill before investing time if down > $200K confirmed.
F16	LM-NEW-C	OPEN	Sarasota County FL laundromat ($182,529 SDE) found in Session 13 sweep — identical SDE to LM-14 (FL Barrier Island). Likely same listing. Do NOT add as separate candidate. Browse BizBuySell Sarasota County laundromats to confirm before adding as LM-28.
F17	SS-20	OPEN	SS-20 Decatur TX ($1.2M, NOI $109K) — DSCR KO at our capital level. Stressed NOI $76.3K / SBA-stressed DS $92.6K (8%/25yr, $1M financed) = 0.82x. Fails 1.25x floor. Only viable with seller carry ≤5%/long-term AND verified NOI. Kill if no carry confirmed.
F18	SS-21	OPEN	SS-21 BizBuySell 2408925 — unknown location, $350K down claim (UNVERIFIED). If confirmed, equals or exceeds capital ceiling. Capital KO if down > $200K. Pull listing immediately to verify location and down amount before investing time.

Guide & FAQ

How PassiveScore works, key metrics explained, and answers to common passive income acquisition questions.

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Score ≥ 65 = Shortlist

Weighted across 10 criteria. Revenue quality (20%) and DSCR headroom (15%) carry the most weight. Under 50 = pass.

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DSCR ≥ 1.25x (stressed)

Debt Service Coverage Ratio at 70% of stated SDE + 1.5% rate shock. This is the hard underwriting floor — no exceptions.

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~$200K capital pool

Shared with the IP hospitality project. First verified, financeable deal wins. Seller carry near-mandatory to transact before mid-2027.

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Revenue gate

ALL SDE figures are unverified until 2 years of tax returns + bank/processor data are reviewed. No LOI without clearing this gate.

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Pipeline → Scorecard

Click any row in the Pipeline tab to load that deal into the Scorecard. Adjust sliders to stress-test your own assumptions.

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No owner contact

Do not contact any seller or broker without Darrel + Lisa approval. All outreach drafts are reviewed before sending.

Using the app

Select a Business Type on the PassiveScore tab, then either click a pipeline candidate to auto-load it, or fill in the fields manually. Adjust the sliders for each criterion — the live score updates in real time. The DSCR and stress-test metrics calculate automatically once you enter Asking Price, SDE, and Down Payment.

Two numbers: DSCR at 70% of stated SDE (stress scenario — assumes low season or underperformance) and DSCR after a +1.5% rate shock (tests how a rate increase hits payments). Both must stay above 1.25x. If the listing only has a CoC return, that's shown instead.

Browser verification confirmed the listing expired, sold, or was delisted. Dead candidates stay in the pipeline for reference (deal flow patterns, price benchmarking) but are not pursued. Use the filter buttons to hide dead entries.

Passive income acquisition basics

Seller's Discretionary Earnings — the total cash a business generates for one full-time owner-operator, including net profit + owner salary + non-cash add-backs. It's the raw earning power before debt service. Key caveat: seller-stated SDE is unverified until you review 2 years of tax returns and bank/processor statements. Over-stated SDE is the #1 fraud vector in small business sales.

Seller financing means the seller takes back a note for part of the purchase price instead of requiring all cash at close. Benefits:

Lower down payment required
Seller has skin in the game — proves confidence in the numbers
Faster closing vs SBA (6–12 weeks vs 60–90 days)
Flexible terms (rate, amortization, standby period)

We require it because our ~$200K capital must close the deal — full bank financing alone rarely works for this deal size.

SBA 7(a) loans cover up to $5M with 10-year terms for business acquisitions. Key rules:

Minimum 10% equity injection (down payment)
Seller notes must be on full standby for 24 months to count as equity
Personal guarantee required
3 years of tax returns from seller + 2 years of buyer financial statements

SBA is best for larger, well-documented deals. For smaller deals (<$300K), seller financing alone is often faster and cheaper.

Lease risk — short remaining term (<5 years) with no renewal option is a dealbreaker
Machine age — top-load washers, 15+ year machines signal near-term capex
Coin-only — card reader absence limits revenue and attracts a declining demographic
Utility costs — gas/water are the biggest line items; verify with utility bills, not seller estimates
Competition — new laundromats opening nearby, or the property zoned for conversion
Seasonal / neighborhood — student-area mats can swing 30–40% seasonally

Self-storage has some of the lowest operating costs of any real estate-adjacent business: no toilets, no kitchens, no daily tenant interaction. Key metrics to watch:

Occupancy ≥ 85% at underwriting (stabilized)
Cap rate vs local market — compare to recent trades
Climate control premium — CC units rent 20–30% higher
Competition map — supply pipeline within 3 miles
Management — on-site vs remote (software like Storagepug/Sitelink)

Vending routes are only viable if you can service them economically. Our rule: SW Florida or same market as another PI/IP acquisition only — otherwise travel eats the margin. Key diligence items:

Location contracts — are they transferable? How long do they run?
Machine age and condition — older machines need cash investment
Route density — machines per square mile determines efficiency
CoC ≥ 20% is our minimum (margins are thin; management is real)

Ask the PI Assistant

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Scout

Scoring, metrics, deal evaluation & financing

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Hi! I'm your PI acquisition assistant. Ask me about scoring deals, DSCR, seller financing, SBA loans, or what to look for in laundromats, self-storage, and vending routes.