BiggerPockets

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.

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.

It is hard for me to advice you about rehab in Illinois in the winter since all my properties are in the south. However, the winter is good for several reasons. One, people usually don't like to rehab in the winter which makes it easier to get lower bids from contractors. Two, in the north you don't have to deal with rain in the winter and snow is dry (As long as you don't get berried in it...)
Three, rehabbing in the winter will make you ready for the spring when all the potential buyers are coming out of the woodwork looking to buy a house.
My only other advice would be is that if you need to replace the roof, start with the roof. Even if you decide to postpone your rehab, just do the roof. Good roof means dry house and dry house means no further damage.

Thank you all for your replies; points well taken. Although I have to disagree with Eddie Ziv on one point; the weather can be nuts around here (NW of Chicago close to Wisc border). We can have a couple feet of snow and then lots of rain will melt it, then a bunch more snow. But back on topic, a good deal is a good deal regardless of the time of year as long as you factor in all costs involved, including the weather.

Exterior painting is the only really difficult project in the winter - even in Minneapolis we get warm enough weather into Nov. The challenge is getting a painter to work in a very narrow window of opportunity - when you need him.

The market tends to be very slow from Christmas until Feburary - ajust your holding time accordingly - this is great time to pickup up REO bargains.

Many winter/spring REO's have frozen pipes which seem to scare away some investors and regular buyers.

Eddie, I'm sure frozen pipes is not much of an issue in California. My current Minneapolis renovation was winterized last January - however the previous owner vacated the property in November. Bank could not or did not take possesion until January. They then proceeded to winterized a house with lots of frozen/burst pipes. Dumb idea?

Problem is - not only does the hot and cold water supply pipes freeze, but so does the entire hot water heating system. In the process water floods and destroys the hardwood floors.