Buying rental properties at the end of the year

10 Replies

Hello BPeeps!

I currently live in southern California and am working with a realtor and lender in Florida to purchase a rental property out of state.  I've also partnered with my best friend who is a local.  This will be our first investment property and we've found some promising leads which we're excited to pursue.  However, I'm now wondering if it's getting too late in the year to pull the trigger on buying.  Let's just say we find a property within the next week and it takes us 30 days to close and 30 days to rehab.  That has us finding tenants in the November timeframe at the earliest.  All my research has told me that November-January are the hardest times to find tenants.  If that's the case, is it still smart to buy this late in the year?  Or is this just another one of my excuses to stay in my analysis/paralysis stage?

-Ian 

@Jacqueline Carrington I have definitely noticed that buying prices are getting better.  Also notice that the inventory going onto the market is going down as well.  My partner and I are sending out mailers to a bunch of properties to see if we can get some bites and maybe get lower prices.  

winter is a great time to buy...sellers are flexible. I did rent a home I closed on in november 2016,rented in December.The tenant is still current. Usually tenants are reluctant to move during winter, which could be good for landlords.

@Ian Bautista if you do buy and rent it, then set the lease for however many months it takes for it to get it back into prime rental season. Let the tenants know they’ll be able to sign the 12 or 24 month lease in the spring/summer. That way, your future leases will be set to renew in the prime moving season. I tend to do renew mine in April. I do not do month to month. The cycle begins before the kids get out of school. And if the tenant moves out, I have a couple weeks to spruce up the property before prime renting/buying season. My tenants tend to stay for 3 years.

Ive always heard that you can find the best deals in December. Maybe buy this one and see if you cant pick something else up then?

Im hoping to be able to find our first deal by the end of this year, but im also looking for a value add so it probably would need a few months to be rent ready.

@Ian Bautista I’m not sure about your area, but I don’t think it would dissuade a renter. Some may argue that a contracted tenant is a contracted tenant. Most people (families) tend to move in the summer if they have children. So, if I’m doing SFR, then I want my property to hit the market when the most renters or buyers are shopping.