Boat work as a side business?

[F14CRAZY]

Though I'm not finished with my own Bayliner project, a friend of mine and I were thinking...

could you a worthwhile profit by buying, say, 1970s-'90s fiberglass boats up to maybe 21 ft, that have rotten stringers, soaked foam, etc (for a few hundred dollars or less, which we all know is quite possible), gut and properly redo them, and sell them? My Capri was $500 and had a solid hull, good engine/drive, and good trailer. I figure I'll have maybe $1k-1200 into it with epoxy, fabric, wood, cut off wheels, etc etc (I haven't kept a running bill but that's about right).

I don't have a clue as to how much time I have into it and don't know how much more it will take.

Considering the bad economy but, using my Capri as an example, it will be good to go and should last a long, long time. If it helps, my friend's parents paid $3k for a 1986 Capri (19', cuddy, 3.0L OMC, like mine but the newer style) with 200-some hours and its beautiful. Doesn't look like its ever been in water nor outside.

How much could I expect to get for my "restored" boat? New stringers, transom (I prefer I/O's), deck, gel coated floor, all new vinyl (can do that in house), waxed, nice trailer...? $4k? $3k? $2500? I'd like to make at least $10/hour on the project.

Is it possible?

 

[KurtG]

Re: Boat work as a side business?

I think the only real return you are going to see in a late model resto job is engine work. As with houses, most people expect to buy a boat without structural problems so I don't believe that there is much resale value in a floor/stringer type job. I'd bet the most return is in getting a good buy and doing a simple quick clean.

There are enough used boats to move on to the next available option.

 

[F14CRAZY]

Re: Boat work as a side business?

I do agree with the comparison to houses. I'm pretty sure that many, if not most, first time boat buyers that buy one cheap aren't aware of the possibility of rotten decks and stringers. But just like in houses, you can show a potential buyers all your improvements and receipts, but they'll still want it for less.

I've been tossing around the idea in my head. Being January I'd have 5-6 months to redo a vessel before it's selling prime time.

 

[fishrdan]

Re: Boat work as a side business?

The problem with refurbishing/reselling old boats is, people buying older boats are looking for an inexpensive boat, not an expensive rebuilt boat. Something to get them on the water cheap, no matter how bad it leaks or how low it sits in the water.

You could have 2 similar boats sitting side by side, $1000 for an old runner and $3000 for your rebuilt boat. While explaining the value of all the work done to your boat, new stringers fully encased in fiberglass, new foam, new decks fiberglassed underside and top side, new transom, new carpet. I'd venture to say, 90% of the potential buyers are going to hear, blah, blah, blah, blah, new carpet. The other 10% are going to be wondering how well the work was done, were the stringers replaced, was the foam replaced, quality of work. Seems like a tough sell to me.

I think Kurt is right on the money with finding a good boat that needs minor work; upholstery, polishing gel-coat, tune-up. Buy it for $1K throw $500 into it and see if you can sell it for $2500-3000 in the summer. Still not making much, but it's better than breaking even or losing money,

 

[tashasdaddy]

Re: Boat work as a side business?

i have been doing it for years, never really paid my wages. i have to look at it as i am retired, it gives me something to do, with my time. comes do to a free hobby.

Now if you can get customers to bring you their boats, and they pay you to repair them, that's a totally different story. but you can win and lose in that also. they want a price, you give them one, then find more wrong than you expected, it's out of your pocket or labor.

hate to tell you there is not going to be a prime buying season, for sellers. there are already more boats in repo that are newer, that are going to compete. it is a buyers market.

i believe you will see more people with free & clear boats, refurbishing them.

 

[BigJ08]

Re: Boat work as a side business?

The problem with refurbishing/reselling old boats is, people buying older boats are looking for an inexpensive boat, not an expensive rebuilt boat. Something to get them on the water cheap, no matter how bad it leaks or how low it sits in the water.

You could have 2 similar boats sitting side by side, $1000 for an old runner and $3000 for your rebuilt boat. While explaining the value of all the work done to your boat, new stringers fully encased in fiberglass, new foam, new decks fiberglassed underside and top side, new transom, new carpet. I'd venture to say, 90% of the potential buyers are going to hear, blah, blah, blah, blah, new carpet. The other 10% are going to be wondering how well the work was done, were the stringers replaced, was the foam replaced, quality of work. Seems like a tough sell to me.

I think Kurt is right on the money with finding a good boat that needs minor work; upholstery, polishing gel-coat, tune-up. Buy it for $1K throw $500 into it and see if you can sell it for $2500-3000 in the summer. Still not making much, but it's better than breaking even or losing money,

^^^Ditto^^^. Flipping boats is kind of like flipping houses in this economy. Look for quick turn arounds.

 

[F14CRAZY]

Re: Boat work as a side business?

Thanks for giving me insight on this based on your experiences. It sounds like quick fixer uppers would be okay but not full stringer jobs.

Good point made that it would be a lot different if someone comes to you with their boat to redo. A marina/shop probably gave them a crazy high price and then they come to you for something more reasonable.

How much does a shop charge for a stringer/deck job anyway?

 

[DJ]

Re: Boat work as a side business?

FORGET IT!

My resto's were a labor of love. Profit was never a goal, even if it could be achieved.

 

[tashasdaddy]

Re: Boat work as a side business?

transom replacement on my 1999 23 ft deck boat, was $2,200.00 they had to remove the outdrive and engine.

 

[92excel]

Re: Boat work as a side business?

How much could I expect to get for my "restored" boat? New stringers, transom (I prefer I/O's), deck, gel coated floor, all new vinyl (can do that in house), waxed, nice trailer...? ?

If you are good at upholstry as you stated in your post then i think thats your best bet.. YOu can quickly flip the appearance of a boat with all new upholstry and make your best profit.. as the guys mentioned above. you can also do re upholstry for clients that bring their boats to you.. you are making all profit minus the material.

I know upholstry jobs range from 2 to 3 thousand around here. you could even get it boat covers, jet ski covers and even auto upholstry.

 

[kaferhaus]

Re: Boat work as a side business?

Unless a boat has some true collector value or sentimental value the vast majority of "rehabs" are a big time waste of money from strictly a financial point of view.

Most people end up with more money in the boat (just materials, forget the labor) than the boat will ever be "worth".

And the prior poster was 100% correct when he said that a buyer expects the boat to be free of structural defects period. They're not going to pay extra because the floor ISN'T rotted.... LOL

And of course with the economy it's only gotten worse.... too many nice boats at good prices to compete against.

Guys rebuild boats because they like doing it.... I assume anyway... otherwise they're just stupid! And I'd hate to think that of anyone.

I've been there and done it, along with building a few boats from the keel up. I never "made" or saved a penny with any project as I could have bought a good boat for less money to begin with and not had to spend my time working and worrying over it.

I can see a "retired" guy building a big boat.... but not a small one... you save nothing (again forget the labor). On a large boat that you built from the ground up where you could get some decent prices on materials because of the bulk and lack of repetitive shipping costs etc. a person could indeed save some money if he threw out his time and did a good job scrounging.

Was a story in the paper here a couple years back about a old man who lived on the river. He built a 50 some foot trawler in his back yard and slid it into the river on wooden rails. Took him 6 years working full time and cost him over $200,000 to build it. Granted it likely would have cost well over $500,000 to have that boat built in a yard.

2 weeks after putting it in the water he died of a heart attack and the boat eventually sold for around 100K.... no name builder, no warranty, no documentation etc. etc.

 

[tashasdaddy]

Re: Boat work as a side business?

i'm doing it in the wrong place if you can "that nets you $1500 or $2000 each?"

i have a boat that is in the back yard covered, i used it a couple of times, and put it on the market. i got down to a sell price of $1500. it still did not sell, (this was in August, the beginning of the financial scare). so it is in the back waiting for a better time to sell. that makes a total of 5 boats owned at present.

 

[F14CRAZY]

Re: Boat work as a side business?

dang lawyers always breaking up the fun

A restored boat, "as is", may be hard to sell too

 

[kaferhaus]

Re: Boat work as a side business?

I'll give a good example. On the local craigslist here there's a 1973 16ft tri-hull thundercraft that a guy has been listing for several months. The boat has a 70HP merc that has a bad starter (year unknown but appears to be a 70s motor). He started out asking $1500 for this boat some months ago. only had one picture posted with the ad which was a stern shot.

Last week I asked him for more pictures (price has come down to $725) and asked him about the condition of the deck.. His response was "yeah a few soft spots on the floor, but it's in good condition for it's "age"....LOL He said the transom "seems fine to me"..

Well the pictures he sent were very high resolution and I was able to zoom in on the bow... the boat has obviously ran aground pretty hard or had a trailering incident. The gel coat has been abraded off the center hull from the water line back about 3-4 feet and you can see "fibers" sticking out. The walk through portion of the windshield has 3 large cracks in it and the once chrome bow rail has been painted silver...

And of course he claims the engine "runs fine" even though he admits the starter hasn't worked for months and it has no provision for rope starting..

The trailer looks to be okay.

So this boat is likely destined to the scrap heap but the owner thinks he's giving someone a great deal.... doesn't run, needs floors (and likely stringers and transom) needs glass work on the bow, needs a windshield and new bow railings...

I offered him $150 for the whole rig hoping to part out the motor and keep the trailer. Boat would go to the landfill (which they charge you for by the way) Likely a $75 fee.

There's no way you could "fix" this boat and ever come out even.

 

[jonesg]

Re: Boat work as a side business?

It might make more sense to fabricate specialty parts for boats, leaning posts, outboard brackets, swim platforms.
Ideally ez to install parts that can be shipped UPS and sold nationwide.

 

[oops!]

Re: Boat work as a side business?

i didnt have time to read all the replys......but read this one a few times.

i have been doing it for years, never really paid my wages. i have to look at it as i am retired, it gives me something to do, with my time. comes do to a free hobby.

Now if you can get customers to bring you their boats, and they pay you to repair them, that's a totally different story. but you can win and lose in that also. they want a price, you give them one, then find more wrong than you expected, it's out of your pocket or labor.

i believe you will see more people with free & clear boats, refurbishing them.

 

[DJ]

Re: Boat work as a side business?

I agree that there may be a few $$$ to be made in the reupholstery buisiness. As long as you are good and fast.