Step 4Wiping the slate
Laws vary from state to state, but most commonly, you must at least remove the safety equipment from the exterior of the bus that is common and unique to school buses. This can even include the paint. Some states do not allow you to keep the yellow, others might take offense to the words "School Bus" being visible. This will probably only be an issue if you purchase directly from the government or school board at auction, but ask your DMV while you're there. They can tell you if you need to pack a few cans of spray paint to cover up any 'illegal markings'. My bus was maroon and white, the colors of the university it came from. I painted over the stripes only to clean up the outward appearance for the sake of my neighbors.
You will also want to remove most, if not all, of the seats. Getting rid of bus seats could be an entire instructable by itself. OH wait... it is! Some people re-use varying amounts of the plywood, foam, pleather and steel, but for the most part, getting rid of them without having to pay to haul them to the dump can be a pain. Check with your recyclers to see how much, if any, they are interested in and it might pay for the disposal of the remainder of the material.
Most bus seats have two long legs and two short legs, so they don't work well for stand alone seating. They can be removed in many cases with a simple ratcheting socket wrench. Air tools are just cool all by themselves, but can make the job happen fast. A right angle grinder can be a real life saver when all else fails.
In addition to the seats, be ready to remove heater hoses, some full of anti-freeze. Engine heat is often used to keep the kids warm, but these systems will be worthless without the engine running. Almost all of the home converters pull these systems out. Be careful to dispose of any fluids properly. You will also want to make sure you close the loop by connecting the hot water supply and return on the engine block. I had a fortunate turn of events. The pipe holding connecting the hose to the engine had corroded, so I spent $20 on a tap and two plugs, then cleaned up and plugged the holes, negating the need for a connecting hose.
Altogether, the interior preparation took myself and an able bodied friend about a day. You'll also want to walk around and feel for any 'soft spots' in the plywood flooring. Take the time to cut these out now... it will only be 10 times harder later. We'll talk about any flooring repairs in a future instructable, but if all is well, you should have an empty bus, ready to measure to your heart's content while you plan your next moves.
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I so wish I made what you do....