Winter Purchases

Does anybody purchase properties over the winter but hold off to rehab until feb/march? I'm interested in thoughts on rehabbing in winter and listing vs holding off and rehabbing and selling during the spring market.

I know holding costs will be higher but not significantly in our local market, ex. purchase for 30 to 40k.

Joe O

Real Estate Investor · Las Vegas, Nevada

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Oct 13 '11, 06:55 AM

What would be the advantage of purchasing that early?

Do you expect purchase price to be significantly lower at that time?

Low enough to account for the extra costs (interest paid - or not gained if bought with cash, utilities, potential theft/vandalism, potential winter problems such as frozen/burst pipes that are now your problems, etc).

Danny Day

Rehabber · Houston, Texas

369 posts
3 awards
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Oct 13 '11, 07:23 AM

Why would you not start rehab in winter? I can see holding off to sell in Spring, but I would start rehab ASAP.

Danny

Shawnn Lynch

Rehabber · Mandeville, Louisiana

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Oct 13 '11, 07:35 AM

I have to agree with Danny, what better time to do what needs to be done during the winter months and have your rehab completed and ready for after the holiday season and tax refund time. I keep in mind that if a buyer isnt enjoying Christmas dinner in the home I have listed, and the clock is ticking now,Im likely going to have that down time marketing wise to apply my efforts towards reno work.. work with what you have.. time is money..

J Scott

Real Estate Investor · Atlanta, Georgia

Donor Pro

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Oct 13 '11, 07:59 AM

If winter isn't a good time in your area to be selling/renovating houses, then I would imagine contractors are pretty slow and desperate for work. That means you can probably get better prices...

J Scott, Lish Properties, LLC
Telephone: 770-906-6358
Website: http://www.123flip.com
http://www.123flip.com

Ryan Pyle

Real Estate Investor · Toledo, Ohio

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Oct 13 '11, 09:19 AM

I'm in Toledo and I always stock up on houses in Nov and Dec because no one else is buying. I get better prices due to lack of demand and banks' desire to get inventory off their books for year end. I rehab them in the winter and put them on the market as soon as they are ready. And yes, they do sell in Jan, Feb and March. Look at your local MLS sales figures, homes sell every month. You just have to be one of them.

Wes S.

Real Estate Investor · Cedar Rapids, Iowa

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Oct 13 '11, 09:49 AM

Fair question but I agree all these guys...who cares what time of the year it is. If its a buy, its a buy. Bought 2 last year in Feb and got smokin deals, holding as rentals but . And what better time to remodel...

Ryan: You make it sound like your stocking up on peanuts!

Ryan Pyle

Real Estate Investor · Toledo, Ohio

138 posts
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Oct 13 '11, 10:52 AM

Wes- I usually buy way too many that time of year and then get way behind schedule on rehab. So maybe I am a bit too casual about it. :)

Sherry Lewis

Rehabber · Fort Walton Beach, Florida

Pro

240 posts
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Oct 13 '11, 11:00 AM

Somehow Ryan,

I don't see you as someone that puts themselves too far behind an 8 ball LOL

Thanks for your help earlier this month too btw... all worked out well.. got blessed actually. The lawyer said I would have been stuck but the auction site intervened and I got 100% back without taking official possession!

Ok now for rehabbing in the winter... much better time to do it. Your not sweating your butt off as much, space heater work great either off your electrical or your generator, and contractors suddenly have much more time for you. On top of that, in the spring when you have your next job, your contractors will remember that you helped feed their family over the winter.

Sherry Lewis, New Days Real Estate Investments, LLC
E-Mail: workingtogether@newdaysrei.com
Website: http://newdaysrei.com
Sherry Lewis "Planning Today for the Future" workingtogether@newdaysrei.com

Jason Davis

Rehabber · Powhatan, Virginia

190 posts
3 awards
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Oct 13 '11, 02:02 PM

My sale closes in mid Nov. I will have under contract and will close on it ASAP. Once that one is almost done, I will hopefully close on another. I am hopingbto have one or two ready by April 1.

Chris Calabrese

Rehabber · Mt. Pleasant, South Carolina

Pro Basic

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Oct 13 '11, 05:48 PM

I don't think there could be any advantage to waiting. Even though winter may be a slow selling season, it can't hurt to have the property on the market. It's not like nothing sells at all in the winter, and hopefully your flip will be one of the best homes available anyway.