The Airplane BRRRR Method | SubToPlane

The Airplane BRRRR Method

Build a cash-flowing aircraft portfolio using the proven Buy, Rehab, Rent, Refinance, Repeat strategy adapted for aviation investments.

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Buy

Use creative finance to acquire undervalued planes from motivated sellers. Look for distressed aircraft with solid bones.

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Rehab

Refurbish with engine work, avionics upgrades, interior, and paint. Transform neglected aircraft into flight-ready assets.

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Rent

Lease to flight schools under NNN leases for consistent cash flow. Typical returns: $3K–$6K/month per aircraft.

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Refi

Pull out capital with a cash-out loan based on new value. Use improved asset value to access fresh capital.

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Repeat

Rinse and repeat to build a cash-flowing aircraft portfolio. Scale systematically with proven processes.

How It Works in Detail

🛒 Step 1: Buy Below Market Value

The foundation of the BRRRR method is acquiring aircraft at a significant discount. We target motivated sellers facing financial pressure, maintenance backlogs, or life changes forcing a quick sale.

  • Target aircraft 30-50% below retail value
  • Use seller financing, subject-to deals, or creative structures
  • Focus on popular training aircraft (Cessna 172, Piper Cherokee, etc.)
  • Look for mechanical issues rather than airframe damage
  • Verify logs and AD compliance before purchase

🔧 Step 2: Strategic Rehabilitation

Smart rehabilitation focuses on high-ROI improvements that increase rental appeal and aircraft value. We prioritize safety, reliability, and marketability.

  • Engine overhauls or top overhauls when needed
  • Modern avionics upgrades (GPS, ADS-B compliance)
  • Interior refresh with durable materials
  • Exterior paint for curb appeal and corrosion protection
  • Annual inspection and squawks resolution
  • Comprehensive pre-buy for new lessees

🤝 Step 3: Rent for Cash Flow

Flight schools are ideal tenants, providing stable long-term leases with triple-net arrangements where they handle insurance, maintenance, and hangar costs.

  • NNN leases transfer all operating costs to tenant
  • Typical lease rates: $3,000-$6,000/month depending on aircraft
  • Flight schools prefer turn-key, reliable aircraft
  • Multi-year leases provide stability
  • Annual cash-on-cash returns often exceed 15-25%

🏦 Step 4: Refinance to Pull Capital

Once the aircraft is rehabilitated and generating rental income, we refinance based on the new appraised value to pull out invested capital.

  • Get new appraisal showing increased value
  • Secure cash-out refinance at 70-80% LTV
  • Recover most or all of initial investment
  • Keep aircraft generating monthly cash flow
  • Use extracted capital for next acquisition

🔄 Step 5: Repeat and Scale

With capital recycled from previous deals, continue acquiring and improving aircraft to build a portfolio of cash-flowing aviation assets.

  • Reinvest extracted capital into new acquisitions
  • Build relationships with flight schools for guaranteed tenants
  • Develop systems for efficient rehabilitation
  • Scale to 5, 10, or 20+ aircraft in portfolio
  • Create substantial monthly passive income

Real Deal Example

Cessna 172M purchased from motivated seller

$45K
Purchase Price
$25K
Rehab Investment
$110K
New Appraised Value
$4,200
Monthly Rental Income
$77K
Cash-Out Refinance (70% LTV)
$7K
Left in Deal

Result: $4,200/month cash flow with only $7K invested = 72% cash-on-cash return

Why Aircraft BRRRR Works

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Infinite Returns

By refinancing and extracting your capital, you can achieve returns that far exceed traditional investments while keeping the asset.

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Scalable Model

Recycle the same capital across multiple deals to rapidly build a portfolio of income-producing aircraft.

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NNN Lease Protection

Triple-net leases transfer maintenance, insurance, and storage costs to tenants, minimizing your expenses.

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Stable Demand

Flight schools always need reliable training aircraft, providing consistent tenant demand for well-maintained planes.

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Forced Appreciation

Unlike waiting for market appreciation, you create value through strategic rehabilitation and improvements.

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Tax Advantages

Depreciation, interest deductions, and bonus depreciation provide significant tax benefits for aircraft investors.

Ready to Start Building Your Aircraft Portfolio?

Whether you have a distressed aircraft to sell or want to learn more about aircraft investing, we're here to help you succeed.