There are numerous variables to a leaseback arrangement. If you goggle
on it you'll get most of the basic answers.

In my own experience, be aware that if the plane hasn't been on a
leaseback it's going to break as soon as people start flying it
regularly. Exhaust cracks, a weak jug, radios, etc. It all gets a good
workout and the weak links will go down. Remember if the engine goes
south your staring down 20k worth of repair bill while your plane sits
for a month or two. If those two months are prime flying season even
worse.

People treat your plane like crap. I installed new visors and vents.
It took one flight before some yahoo broke them. Plan on a stained
interior, scratched windows and fading unwashed paint.

Most leasebacks are sold on the idea of using the debt service and
depreciation as a schedule C loss on your taxes. If you don't have the
income to post against the loss your out of luck on that. (I did and
made sure I documented so I had no trouble here) Plus you have to be
wary of the passive loss audit and recapture of depreciation at sale.

It's not impossible and it can be done, but like I've heard it put
elsewhere you have to go at like a business.


Just a guess at some numbers:

Rental $110/hr, subtract FBO fee avg $15/hr, fuel $40/hr(renters burn
gas), maint $20/hr. So were already down to $35/hr without
reserves(One way to go is to just always finnance the
engine/paint/interior replacements), without training use 200 to 250
hours a year is pretty good, lets be nice and say 250 hours, which
gives $8750 per year. Out that comes the insurance and tie down. Not
much left, eh?

Now this is a pretty pesimistic estimate but it gives a basic idea of
how fast the money evaporates, pay attention and make sure you go in
well informed.