Magistrate Stella Stuthridge admitted there was a risk in allowing Leslie Cassidy, 34, back into the community, but found there may be a delay in police getting their evidence ready for court and said the final sentence may not be a jail term.

Cassidy was arrested last week when police found the homeless man in a shed on a White Post Road farm property at Everton Upper with $1830 in his wallet.

Leading Senior Constable Chris Atwell told Wangaratta Magistrates Court on Monday that Cassidy claimed the money was from the sale of a motorbike, but the 17-year-old who initially backed up the story then backflipped and told police the cash was not from him.

He said there were two firearms in the shed, including one stolen from Markwood in 2013, plus a Dingo earthmover and trailer worth $26,000, stolen from Wangaratta in March.

Solicitor Geoff Clancy argued Cassidy did not have exclusive access to the shed and should be presumed innocent. “There are too many people on the property with suspicious backgrounds for it to all be attributed to my client,” he said.

Sydney King, who was staying with Cassidy in the shed, remains in custody after she allegedly admitted the liquid drug 1,4 Butanediol, which turns into GHB when ingested, belonged to her.

Cassidy was on bail from April 20 when police allegedly found $14,700 in his backpack, $7900 under the mattress of his Beechworth home and $660 in the garage.

They also allegedly seized three grams of cocaine, a small amount of methamphetamine, ziplock bags and scales.

He was bailed to reside with his brother in Albury.