First plane,,,,Rental?

[LowanSlow]

Hey all, recently started looking at what appears to be a really nice IFR Cessna 150 (hanger Queen) with low times and full logs, problem is that its sat for a couple years, albeit in a nice hangar. Plans are to buy the airplane and remove the engine and freshen it up at the school I attend for my A&P, then annual it again. what has me interested is that where im at, I could have it rented for between 150 to 200 hrs. per year. ive taken into account the maintenance (annual+100hr), comm. insurance, hangar fees, tires/tubes, brakes, oil changes, fuel cost for 200 hours, and misc. things for the first year. My question to you who have rented aircraft before, do these numbers even sound close to actual cost?
the numbers ive came up with so far using 200 hrs of flying a year.
$10550+.33% reserve for the unexpected for the first year + all maintenance, insurance, fuel, misc. ( excluding aircraft purchase price)
$100 per/hr rental rate at 200 hrs

1. What would be the best insurance company to go with for the insurance on this plane being a rental.
2. In general, is this just a bad idea being that this would be my first plane.
I don't expect to make much if any money, I just want to be able to help the plane pay for itself in 3-5 years.
Thanks for the help.

 

[flyingron]

If you want this for the education aspects that's fine, but 100-200 hours a year is going to be a killer for rental business. You won't come close to breaking even (even before you start things like reserves).

Fuel and tie down you should be able to look up for your airport.

Insurance is going to be more than you anticipate. I'd suspect $3000 would be a good starting place with no hull coverage.

If you're leasing this to a school/rental/club, you probably are going to have to account at 10% to them for the privilege.

Unless the plane is in good enough shape to be available to fly whenever students/instructors want it, people will ignore it. It will remain a hangar queen forever.

Leasebacks/rentals are not a great way to get into the plane ownership business. I did that with my first plane (even after I had already been affiliated with a couple of operations as the lessor, I learned things as the lessee).

 

[LowanSlow]

FlyingRon I appreciate the honest feedback, the goal with this plane, as far fetched as it might sound is to just break even with the costs per year for it being a rental, like I said in the original post im not looking to make money. as far as expenses,
the 150 ill be able to it buy it cheap, its a nice, very clean airframe with great paint and interior plus decent avionics ( enough for IFR's 1 precs & 2 non-precs) and the engine has 800 hrs on a complete overhaul, plans are to replace all gaskets, inspect in side (fingers crossed the cam is not bad or jugs) and replace any rubber fittings and hoses on the plane since its sat.
I used $3000 as the base price for insurance.
As far as airport fees im lucky enough to know the airport manager, who gave me the prices per year for hangar and fuel to fly 200 hrs, ive got the prices per year figured.
I talked with an A&P IA and also the owner of the plane which I rent now and the numbers in my first post are what we came up with, but whos to say its even close to breaking even.

 

[farmerbrake]

Can't speak for owning a plane and renting it out (just bought into my first plane) but I can share you my rental cost/experience.

Not sure what rental rates are in your area, but in northern MD (outside of the sfra) I had access to an ifr Cessna 172 (two flip flop radios, and panel mount garmin 795, not ifr GPS but still nice) for $90/Hobbs dry. Also had access to a 77 ifr archer with 430 (can't remember if it was waas or not, flew it before I cared) and backup radio for $100/hobbs dry.

Edit to add. The 172 was the flight schools plane, and the paint wasn't in the best shape. The archer was on leaseback and paint was in good/almost great shape. Both were mechanically sound and safe.
Also had access to a little Cherokee 140 just vfr. It was either $80 or $85/hobbs dry. Didn't fly it except for my first discovery flight.