Originally Posted by TravisUK
Some food for thought about buying a plane and renting it out...There is a 141 school that if you have the credit and $$$, you buy a brand new Cessna and do what they call a lease back. You lease it to the flight school, they manage it and cover the insurance for the students and supposedly you get enough money that covers all of the payments and maint. costs. Oh, you get to fly it whenever you want too. I don't know how well these programs work but but im sure someone on the boards has dealt with or heard about these.
Leasebacks can work in some cases. The benefit is usually related to depreciating an asset at tax time and not really a reliable source of cashflow. I'd discuss the idea with a (good) CPA.
One thing that you need to ask is: "If the airplane can be purchased on credit, and the thing will be cashflow positive....why does flight school need you?"