I have the opportunity for a rental property and was considering a business venture.

The property has 2 lifts, plus a spot for a dyno, which can also be a lift, parts washer, lathe, walnut blaster, etc.

I was considering, in addition to the lifts, supplying the customer with the use of a comprehensive sets of tools (impact guns, ratchets, torque wrenches, etc) and then charging for the use of garage, tools, dyno, etc. This will be in addition to my stocking oil, filters, and a small inventory of parts. Maybe even a seasoned mechanic or direct and/or assist with light repairs and install.. perhaps tuning.

What would be a good rate.. per hour.. per day.. etc.

ANY input will be appreciated!

 

LOVE THAT SKAKE......YO

 

id see what other shops rates are in your area and go slightly lower.

 

 

I know insurance will be an issue..

 

I agree, sadly this might not be doable esp when you are just starting, if you are looking into this, try having more money then you think you need.

I'm quite fluent in such affairs, if you ever want a hand feel free to ask me.

I wish you the best of luck!

 

so this would be like "rent a shop" ????
it is a kool idea but i agree that insurance will be a huge problem

you might have a better shot at renting bays to mechanics, and then you would have a nice place to work on your toys and make some cash also

or open the shop and hire a few mechanics and cater to all cars, possiblities are endless

 

Back in the late 1960's and early 1970's, there were several "rentable" garages in CT where people could come in do their own work. I'm pretty sure those all died out in the late '70's - the insurance was expensive and, if I recall correctly, very little money was made in this type of business.

 

I actually looked into this quite seriously about a 4 bay building close to my old condo.

To make a long story short, you can make more money renting the place out as storage.

When all is said an done with the numbers.... the insurance is too high, and the capital necessary to start eats up any profits that can be made over the life of the building.

It is cheaper and offers a better return overall to grab the place, put just enough money into it to make it secure and rent it out.

I actually bailed on commercial real estate all together and went residential. The cap rate on residential property can be quite good in certain markets.

 

We have that on base minus the dynos. they supply us with any tools and a little assistance if needed. they supply a small amount of parts, oil, filters, belts, bolts, etc. and they have services for us like changing oil, brakes, all the routine maintenance stuff. Regular stalls are $3.50 an hour and stalls with lifts are 4.50. hehe, but you gotta be able to get on base to utilize it

I like you're thinking, it's great to go somewhere and have all the tools there and some assistance to help. But everyone's right, you would have to charge a lot to make a profit and I doubt a lot of people would pay the kind of money it would take. You might be better off hiring some mechanics and open it as a shop people can drop their cars off at or have them come in and get them tuned and dynoed.

 

Didn't the Car talk brothers have one, even post insure rate hike, and they also would do labor for a fee?

I think I remember hearing something about that, and they wound up doing most all the work anyway.

Also, one thing to consider, is how do you know joe blow can run a dnyo safely to him and or the dnyo.

 

setup an LLC to lease the building out to another tenant, regardless of what their business is. as part of the lease include the language that the tenant will pay all expenses relating to the use of the building, ie. utilities. charge enough rent to cover the mortgage payment and any taxes. maybe tack on 10% to whatever that comes out to be if your are looking to make a profit with it. Even if your not making any money on it your still gaining a building out of the deal, which your not paying for.
Depending on the cost of the building, the debt payment, and other related expenses, it could all had for very little in taxes.