Buy or Don't Buy in Q4?

[Derek Luttrell]

Hi All, 

I am ready and looking for what will be my 5th property, but I am unsure of how wary I should be of the winter months. Right now, the leases on my properties start in April, June, August and September, and if I went under contract on anything else in 2018, the lease would start in Nov, Dec or Jan. 

I invest in a strong rental market with high demand, but I have not been around long enough to experience firsthand what happens to the market once the snow starts falling (Indiana). It's a Catch-22 of sellers becoming more desperate to unload their listings, but investors risking extended vacancies until Spring. Do you guys avoid acquisitions in Q4, or maybe the opposite, do you press harder on the gas in Q4 for a better buying opportunity? 

[Derek Luttrell]

@Russell Brazil that's a nice perspective. If I close in October, payments don't start until December, so even if I have to go vacant until March, it's the the price I pay to lock in a performing asset for the next decade+. 

@Peter M. good point as well. I can't control whether or not tenants need a place to move to at any point in the year, so it makes sense to treat all seasons the same. If anything, include 3 months of vacancy in my acquisition costs, and reflect that in my offer.