Aircraft Hanger, a good investment?

[Eric Healy]

Hey BP,

I found a nice aircraft hanger at our local airport and I think it may be a good investment. I’m a pilot but not looking to use it myself. I would like to just rent it out for cash flow. I’m on the west coast, so cash flow like this is hard to find. I would like to hear all you thoughts on this one. I have never heard of any investors doing this, does anyone out there invest in hangers?

In our area, this should rent for $2000/month. My quick math says, 60K (30%) down, morgage payment $1000 plus $230 /month land lease and $125/min for taxes. This gives me a 13% cash on cash. I’m also thinking it could appreciate. They don’t build new hangers very often as there is limited airport land. This is at a pretty busy regional, commercial airport. One concern and question is about the land lease from the city, what happens when this is done?

Here are the specifics on the unit:

Large Hangar For Sale $197,500

Hangar Size: 4,125 SF (55' x 75'), Construction: Steel hangar fully insulated with efficient natural gas heat.

Lot Size: 0.19 Acre (8,125 SF) of leased land

Zoning: AIRPORT-L, M1-L,

OSPR-L, PF-L

23 years remaining on land lease.

Hangar has an office, shower, gas heat

Single lift hydraulic 53' x 18' door

200 amp service