Aircraft as an investment?

[epetes]

Hello I am new to the forum and I am in the early stages of researching whether or not it is feasible for me to buy a plane.

I have my PPL but I only have 43 hours. I am not current but I plan on getting current again very soon. All of my time is in Piper Warriors. I have my A&P and that is technically current although currently I am not turning wrenches. I am hoping to buy a plane for around $30k and I have really taken a liking to Mooneys. I am thinking an older M20C. I would like a plane that is fairly close to needing an engine overhaul because I would like to do most if not all of it myself. My plan would be to fly the plane myself to rack up some hours, work on getting my IFR rating, and to take some cross country trips back home (520 miles each way) with this plane. I would be doing the mechanical work on this to increase my mechanical experience on GA aircraft since all of my experience is on commercial jets. I would like to do the overhaul myself and possibly get a new paint job and 'spruce it up' a bit so that ultimately I could either sell it for a profit or just make enough to cover the majority of the payments, insurance, tie down costs, etc. Then I would like to do the cycle again to keep racking up hours and experience. Ultimately I would like to start my own maintenance business but I need to rack up my GA experience and make sure the business is there before I would drop the job I have now.

--Does all of this sound like it could work? Or am I being unreasonable?

--Also would the insurance costs on the M20C be astronomical for me with my low hours? I would really like an M20E but I figured the insurance and getting the high performance sign off can wait until I have more hours.

--I still have a lot of research and studying to do before I make a move but can anybody think of any major roadblocks that I might have to clear before I can move forward?

My first step in this plane is to rack up another 10 hours getting current and comfortable flying again.

Thanks for any info that you can give me. I am sure I will be posting a lot more questions on here as I move forward. I have been reading some threads on here and it seems like a very informative forum.

[yota]

I do not know about it being an investment.Do you have a hanger?The insurance will be around $1700 to $2000 ayear.Good luck.

[epetes]

I don't have a hangar right now. I am still in the process of figuring out what everything will cost me per month. I realized that my subject might not have been the best. I probably should have put "Aircraft as an investment for a mechanic". That was about what I was thinking the insurance would be though, thanks for the reply.

[Dantilla]

A Mooney M20C is a good airplane, but it may be difficult for you to get insurance without plenty of retractable time, and/or an instrument rating.

While it may be possible to make money, you better plan on merely breaking even.

[epetes]

Now that I am realizing the insurance is going to cost me enough to put this plane out of my price range, how much would insurance run on a 172, or maybe a Cherokee 180? Does it change much making the jump in horsepower (if it stays under 200) or is it the retractable that would make a big difference?

[Dantilla]

The biggest factor is retractable gear. Insurance companies like wheels that are welded down so there can be no gear-up landings.

[yota]

I have been there as far as insurance 60hr PPL and 1965 182H was $1500 a year.I have 90hr and 1969 180D is $1025 and will go down when I get my IR.Both are fixed gear.

[tazmaniac0350]

i have 1600 hours and inst rating. i just bought a 1968 m20c and insurance cost 1394 a year. not too bad considering the more time i get the less i have to pay for the insurance later on

[Go Diesel USA]

It's sad, but the number of 'forgot to put the gear down' accidents are astonishing.

That aside, Aircraft are an excellent investment if you play the cards right

[epetes]

After running all the numbers I am thinking about getting a Piper Cherokee 180. I called an insurance company just to get ideas and for the payment on the plane + the insurance I am thinking the Piper is a more responsible purchase at this point. They told me 'ballpark' on the Piper would be around $800 to $900 per year and for the Mooney since it has retractable gear would be around $1400.

[Denny of Oakland]

I have owned and operated a small GA business restoring crashed and damaged aircraft for many years. I have to admit I did make very good money, however it took a toll on me as I worked 14 to 16-hour days. Owning a business is serious business and depending on where you live and set up business is a point to ponder. I set up my business in California where there are lots of aircraft, taxes and over site from the FAA, but mostly for the state, county and local city with their hands out.

I made lots of money and paid lots to local government taxes. I would suggest you check out your local area and see what rules they have, licenses required and insurance costs to cover a shop and loss of an aircraft. My biggest cost was liability insurance thanks to lawyers, even if it was not your fault something happens and you will be named in a suit been there.

Would I do it again, YES only because I love working on aircraft. I wrote about this in my book I wrote in the appendix section. It was hard, but one of the best rewards knowing it was my shop and my reputation on the line.

I wish you well and hope you look at my book before you jump (lessons learned). You can find lots of aviation information on my personnel web site as well that may help you at. Welcome to StacheAir

Good luck my friend, keep your wings level, power dry, and the blue side up.

[epetes]

Thanks for the insight Denny. I actually saw in another thread where you had mentioned your book and planned on buying it very soon. I also took a quick look at your website and it looks like a lot of useful information. Thanks.