I would love a little advice please.
I had a deal fall through and am now looking for another one but in the back of my head, I am a little concerned with trying to rent something in November/December because of the weather. If I were to put a contract on something in the next couple weeks, I wouldn't close until late October, and surely I will need to do some repairs based on how I want to buy something. This puts me into November/December before having it available. With it usually being very cold in December here in Kansas, plus the Holiday season, it concerns me. Is this something I should even be concerned about or is it a valid concern? Would you wait until December to put a contract on something so it would be rent ready in January or February instead?
Thank yo so much for your feedback. I'm a newbie and it means a lot for experienced investors to be willing to help a brother out.
Not sure how many rehabs you've done, but you might be fine on the timeline you outlined due to the rehab taking more time than you are budgeting.
My experience around the holiday time finding tenants -- once you get a week or two out from Thanksgiving to New Years - you'll have potential Tenants call you - however the qualified ones are far and few between. I dont think most folks want to move during the holidays.
I'd count on vacancy expense until at least Jan-February unless you are willing to put anyone with a pulse in your unit. One other thing to take into account expense wise is heating of course depending on how bad the winter is - you'll also need to crank it up if you are doing any repairs (painting/drywall etc) as well.
With anything it's a roll of the dice on the weather, could be 70 all the way to January, or in the teens the whole time.
So I'd figure unit to be vacant until Jan - Feb time frame and higher gas bills for heat. Others may have different opinions - and I guess it depends on what type of renter/socioeconomic base you are going for. If you are charging a lower rent and in a lower socioeconomic neighborhood I'd say they could tend to be more transient and you might not have any problems filling a vacancy then -
I like to stay with folks who have decent jobs, decent credit, not as transient etc so my experience may be different than some. If you're getting a good deal, the extra 2-3 mos vacancy may not make much of a difference in the bottom line as more time elapses.
That's kind of what I was thinking but it's nice to bounce it off someone. I'm not sure it's worth it either way if it's vacant through a couple extra winter months. I'm thinking holding off to put a contract on something in order to close in late January to February, and start the rehab to have it ready in March or April. I believe I would get more qualified tenants during the spring. Thanks for your input.
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