Buying in the Fall/Winter

[Troy Pirsich]

Hello All, 

Do any of you shy away from deals or tone down your investing in the fall/winter? Has anyone had major vacancy problems when purchasing properties in the late October/November stages of the year? What roadblocks, or opportunities have you found when investing this time of year? 

I've heard mixed opinions on this so I figured I'd spark a topic of discussion seeing as we are in the full swing of fall. 

[Sam Alomari]

Hi @Troy Pirsich

Personally, I like buying in the winter. Here are some reasons to consider:

1- People don't move during cold weather, schools already started in September, everyone settled so a vacant property will cost the seller holding fee. So I get a discount.

2- Investors don't like managing rehab projects during the winter, so they shy away from such deals. I have less competition and my offers are likely to be considered.

3- I can save on rehab cost (labor is cheaper). Contractors usually give a decent discount because they aren't busy during cold weather

4- If the property needs a full rehab (2-3 months), you'll get it ready right before spring.

The two disadvantages I personally experienced:

1- If you buy a rent-ready property, you need to account for a longer vacancy. If you find a tenant, usually they'll sign an annual contract, so you have to deal with a vacant property next year during the winter if that tenant doesn't renew.

2- Higher vacancy during cold weather means a higher gas bill to keep the house warm enough to protect the pipes.