I bought a 2009 Leopard
372 powercat at its 5 year departure point from The Moorings. Boat was $450k new. I bought for $230K. It took $25K (all work done by pros, not DIY) to bring it back to very high quality.
I'm chartering it out now at Southwest Florida
Yachts in Cape Coral
. It only made sense for me because of the large Section 179 tax deduction of a boat business LLC, whereby the whole purchase price
and capital upgrades were written off against my other sources of income
. Those tax savings became the "kitty" by which to mostly fund the negative cash flow each year. I have found that I only need to fund about 2 weeks of my old charter costs but now am using the boat for 4-5 weeks.
In my case this was a winning situation, albeit only 7 months into it. I don't see anyway that a one boat business would ever generate even break even cash flow. After 5 years I should be able to sell and walk away without being upside down. I have very detailed spreadsheets on all the income/ expense/ tax calculations if someone is seriously interested.
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