Would renting out a plane to pay it off be a good idea, or can it be done.
or would i have to create a LLC ?

pay it off renting out, then when paid off own it my self privately.

I'm going though ideas

Really bad idea. Renters will not take care of your property, and have you considered insurance?
Dave

RangeFlyer wrote:Really bad idea. Renters will not take care of your property, and have you considered insurance?
Dave

What about screening renters and weeding out the assholes by requiring proof of renters insurance?

From what I have seen at lease-back flying clubs, only very busy planes are profitable, and even then it is not consistent and varies year to year. I doubt one could count on it to pay off a note. I'm sure you've heard the "how to make a million dollars in aviation..." adage. I think a better way to do it would be to get into a good partnership and buy out the partner(s) when able.

I agree with all of the above. Airplanes cost about ten times what you think they are going to cost. That means it takes about ten average pilots to support and utilize one airplane fully. Airplanes that sit on the line, or in the hanger, most of the time deteriorate rapidly and cost more than they are worth. Another consideration is a well run and organized equal ownership club. I started a 15 member club with a $4,500 Colt in Gallup, NM that evolved into a $10,000 Cessna 172 in two years. That was because we charged ourselves enough, insured well, and maintained the airplanes well.

Call your insurance company and ask about cost to cover commercial operations and primary instruction in your plane.

You will decide quickly how big of a losing proposition that is.

You can start a club - or a partnership - and decide if you want to buy them out after the plane is paid for. But once it's paid for you'll have a beat up plane with a past-TBO engine.

Lather, rinse, repeat.....

Figure out what you can afford and find a plane to fit your budget. On all ends of the economic spectrum lie a leisure class.

Good advice all. And, a single proprietorship LLC will not protect your assets.

The ONLY way I'd even think of going this route would be a leaseback to a very busy school program, with the understanding that I'd be replacing the engine at termination of lease....ie at TBO. AND, only if the school program was really anal about maintenance.

In that case, you're probably going to need a practically brand new plane, since most top schools are using pretty new glass equipped aircraft.

Yet another reason this would be a money loser.

MTV

well it's just a idea so no loss