Is it a bad idea to buy a Milwaukee property in the winter?

Milwaukee, Wisconsin
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Is it a bad idea to buy a Milwaukee property in the winter?

Kelly Oswald
Member since 2022 · 6 posts · 0 votes
Hi everyone,

I'm brand new to Bigger Pockets and am working on purchasing my first investment property in Milwaukee. I grew up in the Midwest but have lived in Seattle for the past 20+ years. I'm looking forward to getting to know other investors in the area and partner on future projects!

I'm currently searching for a single family or duplex and am in the process of lining up my financing. My memory of Midwest winters is a bit hazy by now but I've heard that people don't (understandably) want to move in the winter given the weather. Would it be wise to hold off on my preapproval for now in case I don't find the right property in the next month or so? I don't want to wind up with an empty rental until Spring if I buy at the wrong time or have the preapproval expire if I get it now and need to wait a few months. I am eager to hear the thoughts of any of you in the Milwaukee area about this issue, and would also really appreciate PM company suggestions in the area.

Thank you, in advance, for your insights!
Kelly
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Most Popular Reply

Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
4y

The Milwaukee market has a very strong seasonality and we see the same pattern every year. Fall has always been my favorite time to buy. After the GFC banks wanted to get REO off their books before the end of the year and consumers are not that much different. Prices soften, sold to list ratio is coming down from it spring peak too. Ironically Jan and Feb are probably the two wort months to buy, but the reason my surprise: we have no inventory. Sellers are waiting for spring, this creates the worst imbalance in the marketplace every year. You can find the data on my YouTube channel.

The renting out issue is a bit overrated; sure it is slower during winter, but there is also much less inventory. And does it matter - we average between 70 and100 inquires in the first 48 hours on Zillow. And our average rent is over 1800. So it may take you an extra week or so to fill a vacancy during winter..

Home inspections: snow can be an issue. It prevents you from seeing the roof and the ground around the property, sometimes you cant tell the condition of the concrete driveway. However, we don't have that much snow. And when it snows it does not last that long, a week after snowfall roofs are usually clear again, especially if the attic insulation is not that great (like R60 which is over 2 feet of blow in insulation you see in new construction).

Moving is hard: I would say that's mostly a misconception. People always picture carrying a sofa out during a snow storm. It's almost easier to move during a snow storm in winter than during a rain storm in summer when everything gets soaking wet and your cardboard boxes get soggy and soft. 90% of our winter days are cool and dry, perfect weather to move actually. Precipitation (heavy rain or snow) is never good, winter or summer.

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  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    4y

    I wouldn't worry too much about that.  It is harder to lease in the winter months but lease activity still happens.  Also, it is difficult to find good deals right now, so there is no guarantee you will even find a deal to buy before spring time..

    Smart Asset Realty is who we use for our PM.  Happy to make an intro if you want to send me a dm

    1Reply
  • Tyler Haanen
    Rental Property Investor · Milwaukee, WI · Member since 2017 · 60 posts · 40 votes
    4y

    Historically in Milwaukee, you should be able to find better deals in fall/winter IN COMPARISON to spring/summer. There is less competition for that same reason you mentioned, no one LIKES to move in winter. But, people still do.

    Depending on what you're looking for, your few months of owning the property could be used to fix up the property, if you end up getting it in the middle of winter. Then by the time your rehab is done, spring should be right around the corner. Of course, that depends on the length of rehab as well.

    0Reply
  • Kelly Oswald
    OP
    Member since 2022 · 6 posts · 0 votes
    4y
    Quote from @Brock Mogensen:

    I wouldn't worry too much about that.  It is harder to lease in the winter months but lease activity still happens.  Also, it is difficult to find good deals right now, so there is no guarantee you will even find a deal to buy before spring time..

    Smart Asset Realty is who we use for our PM.  Happy to make an intro if you want to send me a dm


    Ok, super helpful. Thank you, Brock!
    0Reply
  • Kelly Oswald
    OP
    Member since 2022 · 6 posts · 0 votes
    4y
    Quote from @Tyler Haanen:

    Historically in Milwaukee, you should be able to find better deals in fall/winter IN COMPARISON to spring/summer. There is less competition for that same reason you mentioned, no one LIKES to move in winter. But, people still do.

    Depending on what you're looking for, your few months of owning the property could be used to fix up the property, if you end up getting it in the middle of winter. Then by the time your rehab is done, spring should be right around the corner. Of course, that depends on the length of rehab as well.

    Great points. Thanks, Tyler!


    0Reply
  • Scott Krone
    Investor · Northbrook, IL · Member since 2017 · 352 posts · 295 votes
    4y

    @Kelly Oswald - if you buy in the winter you will be prepared for the spring market.  Spring is always the best market.

    1Reply
  • Cayden Standlee
    Real Estate Agent · Milwaukee · Member since 2022 · 57 posts · 25 votes
    4y

    HI Kelly,

    Buy real estate when the price and rehab indicates that you will make money. Winter investment buying it fabulous as all the owner occupants are out of the mix. OO drive the price up. We manage 500 plus units and fill all year long. Strike while the iron is hot regardless of the season.

    0Reply
  • Ryan Leonard
    Rental Property Investor · Milwaukee · Member since 2020 · 30 posts · 13 votes
    4y

    Hi Kelly - I agree with what the others are saying. Both SF and duplexes are often bought for personal use in Milwaukee - not just investment. With that being said, you will be running into fewer owner-occupant buyers in the winter, so you should have a better chance at finding some deals. 

    1Reply
  • Kelly Oswald
    OP
    Member since 2022 · 6 posts · 0 votes
    4y

    Thanks @Scott Krone, @Cayden Standlee, and @Ryan Leonard! Really appreciate your insights!

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    4y

    The Milwaukee market has a very strong seasonality and we see the same pattern every year. Fall has always been my favorite time to buy. After the GFC banks wanted to get REO off their books before the end of the year and consumers are not that much different. Prices soften, sold to list ratio is coming down from it spring peak too. Ironically Jan and Feb are probably the two wort months to buy, but the reason my surprise: we have no inventory. Sellers are waiting for spring, this creates the worst imbalance in the marketplace every year. You can find the data on my YouTube channel.

    The renting out issue is a bit overrated; sure it is slower during winter, but there is also much less inventory. And does it matter - we average between 70 and100 inquires in the first 48 hours on Zillow. And our average rent is over 1800. So it may take you an extra week or so to fill a vacancy during winter..

    Home inspections: snow can be an issue. It prevents you from seeing the roof and the ground around the property, sometimes you cant tell the condition of the concrete driveway. However, we don't have that much snow. And when it snows it does not last that long, a week after snowfall roofs are usually clear again, especially if the attic insulation is not that great (like R60 which is over 2 feet of blow in insulation you see in new construction).

    Moving is hard: I would say that's mostly a misconception. People always picture carrying a sofa out during a snow storm. It's almost easier to move during a snow storm in winter than during a rain storm in summer when everything gets soaking wet and your cardboard boxes get soggy and soft. 90% of our winter days are cool and dry, perfect weather to move actually. Precipitation (heavy rain or snow) is never good, winter or summer.

    2Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    4y

    Midwest winters definitely slow down the rental market but do not let it stop you from looking and buying. If you buy in the depths of winter, it is vacant and move-in ready I would try for a 60-90 day close to get you into the spring. If it isn't vacant, or you will make some updates before it is move-in ready then I would not even worry about when you close. Just have it ready for the spring lease up.

    [email protected]319-288-5382
    Jared Hottle Real Estate59 Reviews
    WebsiteView Page
    0Reply
  • Jason Roman
    Real Estate Agent · Waukesha, WI · Member since 2015 · 31 posts · 15 votes
    4y

    Hi Kelly,

    I would say that most people don’t choose to move in winter if they don’t have to. That said, those that do move usually have to and are motivated to make it happen. Less competition + serious sellers and buyers = better outcomes for both (typically). And I agree with @Marcus Auerbach, snow is easier to deal with than rain.

    Happy to connect and talk more if interested. Good luck!

    0Reply
  • Kelly Oswald
    OP
    Member since 2022 · 6 posts · 0 votes
    4y
    Quote from @Marcus Auerbach:

    The Milwaukee market has a very strong seasonality and we see the same pattern every year. Fall has always been my favorite time to buy. After the GFC banks wanted to get REO off their books before the end of the year and consumers are not that much different. Prices soften, sold to list ratio is coming down from it spring peak too. Ironically Jan and Feb are probably the two wort months to buy, but the reason my surprise: we have no inventory. Sellers are waiting for spring, this creates the worst imbalance in the marketplace every year. You can find the data on my YouTube channel.

    The renting out issue is a bit overrated; sure it is slower during winter, but there is also much less inventory. And does it matter - we average between 70 and100 inquires in the first 48 hours on Zillow. And our average rent is over 1800. So it may take you an extra week or so to fill a vacancy during winter..

    Home inspections: snow can be an issue. It prevents you from seeing the roof and the ground around the property, sometimes you cant tell the condition of the concrete driveway. However, we don't have that much snow. And when it snows it does not last that long, a week after snowfall roofs are usually clear again, especially if the attic insulation is not that great (like R60 which is over 2 feet of blow in insulation you see in new construction).

    Moving is hard: I would say that's mostly a misconception. People always picture carrying a sofa out during a snow storm. It's almost easier to move during a snow storm in winter than during a rain storm in summer when everything gets soaking wet and your cardboard boxes get soggy and soft. 90% of our winter days are cool and dry, perfect weather to move actually. Precipitation (heavy rain or snow) is never good, winter or summer.

    Marcus, thanks so much for these insights. These are the kinds of nuances are so valuable, especially to out of state newbies!
    0Reply
  • Kelly Oswald
    OP
    Member since 2022 · 6 posts · 0 votes
    4y
    Quote from @Jared Hottle:

    Midwest winters definitely slow down the rental market but do not let it stop you from looking and buying. If you buy in the depths of winter, it is vacant and move-in ready I would try for a 60-90 day close to get you into the spring. If it isn't vacant, or you will make some updates before it is move-in ready then I would not even worry about when you close. Just have it ready for the spring lease up.

    Thanks, @Jared Hottle--I love the longer closing suggestion!

    0Reply
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