Buying a property during a cold winter season

Buying a property during a cold winter season

Plainfield, IL · Member since 2016 · 139 posts · 53 votes

I live in the Chicagoland area, and our winters get very cold! Now, i have yet to buy my first investment property, but I am nearing that stage of readiness. My plan has been, lately, to pull the trigger on my first property early next year, when the weather starts to warm up(March/April). 

Throughout all the reading and podcasts I have listened to, somewhere(I do not recall) I remember hearing/reading that buying properties in areas that have harsh winters is not the best idea. Reasons being less tenants searching for a new place to live, tougher conditions to rehab, etc.

As a new investor, am i psyching myself out and halting my investing for no sufficient reason? I would like my first investment to be a success story, and I believe it will be. But as a first timer, I do not want to put extra bottlenecks on myself and make something new even more challenging, to start out. I am thinking come new year 2017, I will be educated enough to make my first purchase, but would it be in my best interest to wait a few more months before taking action? I'd like to hear your thoughts!

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Urbana, IL · Member since 2012 · 1k+ posts · 425 votes
9y

Think of it as an opportunity that others ignore for your very reasoning. Winter means that the people lookling for new homes are likely seriously looking to move. It will be a bit tougher on average to find those tenants but it also means that other investors aren't necessarily looking as hard. 

For you, it means you one of the few serious buyers looking to buy in the colder months as well so keep that in mind. You'll also have an advantage in most cases with finding cheaper labor in the winter months when the bigger construction jobs dwindle down. Those workers still need work and the demand for work is likely not as high during the summer.

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  • Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    9y

    @Adam Juodis  If I understood correctly, you read that it is tough to find tenants in areas where it has harsh winters, no matter what time of year?  Finding tenants during the winter can be tough at times, but not impossible.  It's usually also due to the holiday season, people are making other plans other than moving.

    If buying during the winter, just make sure the property has been properly winterized if vacant.  Also, keep in mind, depending on what condition you buy the property in you will have to take some time to get it ready and plus the time it takes to close on it. This might make it closer to spring time.  Hope this helps.

  • Investor · West Hartford, CT · Member since 2015 · 102 posts · 29 votes
    9y
    I agree with Carolina E., at my main job we do not end leases in November or December due to it being harder to get tenants in when it's cold. Not many people want to move during the holidays or when it's 10 degrees out. It's not impossible but definitely more difficult.
  • Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    9y

    If a good deal arises, take it. Don't wait for the season.

    Also, don't fret too much about your first deal being a huge success.

    You won't be good at something the first time you try it.

    Just get your foot in the door.

  • Urbana, IL · Member since 2012 · 1k+ posts · 425 votes
    9y

    Think of it as an opportunity that others ignore for your very reasoning. Winter means that the people lookling for new homes are likely seriously looking to move. It will be a bit tougher on average to find those tenants but it also means that other investors aren't necessarily looking as hard. 

    For you, it means you one of the few serious buyers looking to buy in the colder months as well so keep that in mind. You'll also have an advantage in most cases with finding cheaper labor in the winter months when the bigger construction jobs dwindle down. Those workers still need work and the demand for work is likely not as high during the summer.

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