Rehabbing in Winter

[Larry Moore]

I am new to rehabbing and wondering what more experienced rehabbers do when faced with winter conditions and a slower market through the snowy season. In the past when I was strictly flipping properties that I had under option, I would generally shut down when the holiday season approached, around November 1st, and start marketing again toward the end of January. Now I am shifting to buying short sales and rehabbing, and will be hesitant to buy a property as we approach the end of the year, particularly if the property needs outside work that the weather would postpone. I would hate to buy a house in Nov/Dec that needed work that I couldn't complete until March/April, depending how much cold and snow we get this year (farmers almanac is predicting a bad one, and last year was worse than most). I could build in extra holding costs and sit on it for a few months, but I really hate to do that (particularly since it would be vacant), and it makes the deal tougher to negotiate with the extra spread.

How do the experienced rehabbers in colder climates cope with the winter season? I am still marketing for preforeclosures, but I am concerned that any short sale I start negotiating now will mean a potential purchase when the weather turns ugly.

[Matt Kearney]

Don't stop just becuase it's winter!! Contractors work year round and they are used to dealing with the elements.... they need to put food on the table during the winter months too :lol: . You can still do roofs, siding, windows, and all your interior work. Things like exterior painting and landscaping are more difficult but just watch the weather forcast and try to do it when you get a few warm days. Also, make sure to keep your heat on as you don't want any frozen pipes in those vacant homes.

The market does slow down a bit around the holidays but you know the buyers that are looking are very serious. Last year I sold one of our finished rehabs three days before Thanksgiving... and was doing a home inspection with a buyer of another one of our homes on Christmas Eve. :D

The winter presents some great buying oppurtunities as all the wannabes are sitting on the sidelines waiting for the spring. You can swoop in and make some great deals and have them ready to go just in time for the prime spring market!!

Keep your marketing going. Most shorts I've been working on have taken 4-6 months or longer to close. So if you start negotiating now you will be closing toward the tail end of the winter.

BTW... I'm in Springfield, MA.