If you are looking for a comprehensive guide to start flipping houses in the state of West Virginia, you’ve come to the right place.
Flipping houses is one of the simplest ways to start investing in real estate. It might be a lucrative business enterprise. However, because it is a high-risk investment, you must examine a number of factors.
But don’t be concerned; I’m here to help you with your research and decisions. This detailed guide breaks down the market research, evaluation, and techniques for flipping houses in West Virginia.
Flipping Houses in West Virginia
West Virginia’s housing market is one of the hottest in the country. House flippers have a once-in-a-lifetime financial opportunity. Despite the low housing market valuation, investors that choose the correct properties and flip houses in West Virginia benefit significantly.
Every investment, including real estate, is very localized. Investing in West Virginia houses is no exception. Paying attention to current market trends and knowing how to respond swiftly might assist you in determining profit or loss. You should always work with a local specialist real estate agent to understand the trends in these local markets and find investment possibilities. Their comprehensive understanding of the intricacies of these specialty housing markets can assist you at every step of the journey.
Analyzing the West Virginia Housing Market in 2022
West Virginia has the 2nd most affordable housing market in the US. West Virginia’s average house value is at $132,638 as of April 2022, which is much less than the national average home value of $344,000 Furthermore, house values in West Virginia climbed by a little more than 5.55 percent in 2021, and are expected to rise by a stunning 13.3% in 2022. These prices, on the other hand, vary even within the state, indicating how regional and localized property markets are.
This trend in the West Virginia real estate market has drawn investors from all over the country. The demand for West Virginia homes has now surpassed the supply. This has resulted in a strong seller’s market in West Virginia’s housing market. The rationale for the influx of investors into the West Virginia real estate market is straightforward. Two of the primary reasons for development are the expanding population and better employment and education sectors. West Virginia has a high school graduation rate of 86.5 percent and a median family income of $45,000.
West Virginia’s economy has exhibited significant indicators of growth as of June 2022. WV’s employment is predicted to approach pre-pandemic levels by late-2022. Overall, job growth is expected to be approximately 1% each year on average through 2025, compared to a national projection of 2%.
Furthermore, the exceptionally cheap housing costs in West Virginia make the market more accessible to first-time real estate investors. You’ll need less money to get started, implying that there will be more newcomers in the future, and hence more competition.
How to know if the house in West Virginia is a good investment?
After studying West Virginia’s housing market and economy in general, you’ll definitely want to look into a more specific location and neighborhood to find possible residences. Keep in mind that not every local housing market has the same kinds of investment opportunities.
In general, deciding whether or not a house in West Virginia is a good investment is dependent on a variety of factors. While you’re just starting out, avoid local marketplaces with a lot of inventory and postings that have been active for a long time. Houses in Morgantown sell after 49 days on the market on average. This means it’s a no-go if the property in the area is still open after 49–60 days.
A house in West Virginia is also a good investment if the price is lower than the local market average. One of the simplest ways to find potential value is to look for houses that are significantly less expensive than prior sales in the neighborhood. Remember that the less expensive homes will require significantly more adjustments than the more expensive ones.
How much should I pay for a house in West Virginia?
When selecting how much to spend on a home in West Virginia, it’s typically a good idea to stick to the 70 percent rule. This rule states that you should never spend more than 70% of the house’s after-repair value, minus repair and remodeling costs. Assume you want to buy a property in West Virginia, renovate it for $20,000, and then sell it for roughly $200,000. According to the 70% rule, the most you should pay for this type of property in West Virginia is $120,000.
It’s crucial to remember that the 70% rule is entirely discretionary. It is merely an estimate of the house’s true value. This guideline attempts to provide a profit margin large enough to cover all other expenses while flipping houses in West Virginia while still leaving you with a healthy profit margin.
Do you need a real estate license to flip houses in West Virginia?
In West Virginia, you do not need a real estate license to flip houses. Having said that, if you want to start flipping properties in West Virginia full-time, getting both a realtor and a contractor’s license is usually a good idea.
It’s alright if you don’t want to cope with the challenges of acquiring a West Virginia realtor or construction license. In this instance, I strongly advise you to select an experienced realtor and contractor with whom you can establish an excellent working relationship.
Finally, if you are new to West Virginia, it may be difficult to find a trustworthy contractor or repairman. Furthermore, zoning limitations and laws vary by city, and market trends shift often. Working with a professional agent or contractor may assist you in anticipating potential problems.
How to start flipping houses in West Virginia and make a profit?
You’re ready to begin your West Virginia house flipping journey after conducting exhaustive research on the West Virginia property market and determining that the house is a smart investment. Follow these six steps to begin flipping houses in West Virginia and benefit handsomely from this type of real estate investing.
1. Create a Budget and Secure Financing
When flipping houses in West Virginia, the first thing you should examine is your financial status. It’s always a good idea to do the math before looking at prospective properties.
If you have cash on hand, you should already know how much money you have to work with. You may avoid financing costs, mortgage payments, and other closing expenditures or fees by paying cash for your West Virginia house flips. As a result, if you have cash and are flipping properties in West Virginia, you should always use it.
Using a loan or other types of financing to buy and renovate a home may significantly reduce your potential profits. If you borrowed $150,000 to buy a property in West Virginia, you’ll have to keep paying mortgage payments until the house is sold. Even a 5% down payment on a property may cost roughly $7,500 to begin with. In addition to the $15,000 for repairs and enhancements, you’ll need to invest an additional $5,000.
Repairs and enhancements, unfortunately, take time. As a result, you may wind up paying your mortgage for a longer period of time, perhaps losing a sizable profit margin. Furthermore, when property taxes, building permits, utilities, marketing costs, closing fees, home insurance, realtor commissions, and other costs related to house flipping in West Virginia are included, you may not be able to make any profit at all.
As a result, having cash on hand may help you save money on all of these items while also allowing you to keep as much of your earnings as possible.
But don’t worry if you don’t have any cash. There are still a few more options for funding your house flipping business on a tight budget.
2. Research the Cities and Neighborhoods
After you’ve identified homes listed below market value and considered other signs such as active days on the market, you may assess the neighborhood’s attractiveness. The quality of the location is important when flipping houses in West Virginia. Although the listing and sales price are strong indicators of an area’s worth, other quantitative variables such as the quality of education, entertainment, parks and leisure, and the shopping experience in the community should also be examined.
Existing housing stock in West Virginia’s older villages, as well as a growing metro region, may benefit from rehabilitation and repair. Flipping properties in West Virginia may provide a solid livelihood. You must, however, learn to recognize the suitable possibilities.
Here is a list of the 4 best cities to flip houses in West Virginia for 2022.
Flipping Houses in Charleston, WV
Charleston is the biggest city in the state of West Virginia. This city is composed of 9 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing price for houses in Charleston is just $179,500, trending flat year-over-year. The median listing price per square foot is $96. The median sold price for a home was $94,000. And lastly, the sale-to-list price ratio is 60%, which means homes in Charleston usually sell for 40% below the listing price. Therefore, make sure you have your negotiating game on point while purchasing your house in Charleston, WV.
On average, houses in Charleston sell after 108 days on the market. The city offers 28 public schools rated good or higher by GreatSchools and 12 private and charter schools. Charleston also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.
Out of the 9 neighborhoods in Charleston, Fort Hill is the most expensive one, with a median home price of $270,000. On the other hand, North Charleston is the most affordable neighborhood, with a median listing home price of just around $60,000. There are also some other great neighborhoods, like the East End, the West Side, and Charleston Heights.
Flipping Houses in Morgantown, WV
Morgantown is a city in West Virginia that is composed of 6 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing price for houses in Morgantown is $285,000, trending down 4% year-over-year. The median listing price per square foot is $154. The median sold price for a house was $251,300. And lastly, the sale to list price ratio is 100%, which confirms a strong seller’s market.
On average, houses in Morgantown sell after 49 days on the market. The city offers 12 public schools rated good or higher by GreatSchools and 2 private and charter schools. Morgantown also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.
Out of the 6 neighborhoods in Morgantown, South Park is the most expensive one, with a median home price of $274,500. Conversely, Downtown Morgantown is the most affordable neighborhood, with a median listing home price of just around $170,000. There are also some other great neighborhoods, like First Ward, Woodburn, Sabraton, and Sunnyside.
Flipping Houses in Huntington, WV
Huntington is a city in West Virginia that consists of 13 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing price for houses in Huntington is $139,500, trending up 11.6% year-over-year. The median listing price per square foot is $86. And lastly, the sale to list price ratio is 115.95%, which confirms a strong seller’s market.
On average, houses in Huntington sell after 97 days on the market. The city offers 24 public schools rated good or higher by GreatSchools and also 6 private and charter schools. Huntington also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.
Of the 13 neighborhoods in Huntington, the Central Business District is the most expensive, with a median home price of $259,500. On the other hand, Guyandotte is the most affordable neighborhood, with a median listing home price of just around $30,000. There are also some other great neighborhoods like Westmoreland, West Huntington, and Fairfield.
Flipping Houses in Parkersburg, WV
Parkersburg is the capital city of West Virginia and is composed of 32 neighborhoods. and offers affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing price for houses in Parkersburg is $149,000, trending up 10.4% year-over-year. The median listing price per square foot is $89. The median sold price for a house was $144,000. And lastly, the sale to list price ratio is 97.69%, which confirms a slight seller’s market.
On average, houses in Parkersburg sell after 49 days on the market. The city offers 18 public schools rated good or higher by GreatSchools and 4 private and charter schools. Parkersburg also offers hundreds of grocery stores, restaurants, and cafes. There is also a plethora of beautiful parks and gyms for a healthier lifestyle.
Out of the 32 neighborhoods in Parkersburg, 26150 is the most expensive one, with a median home price of $315,000. On the other hand, the West Side is the most affordable neighborhood, with a median listing home price of just around $85,000. There are also some other great neighborhoods, like Marietta, Vienna, and Belpre.
3. Assemble your team
Whether you want to flip houses in West Virginia full-time or part-time, you’ll need a team of individuals to make each flip a success. A real estate lawyer, a lender, a real estate agent, a general contractor, a few laborers, and an accountant will almost certainly be required.
Working with a trusted team rather than a new specialist for each task is also great if you want to make house flipping a regular element of your investing plan.
4. Select and Purchase your West Virginia House
It’s finally time to buy your West Virginia house after you’ve sorted out your finances and determined whether or not it’s a wise investment. Another consideration when purchasing a home is that houses that require more maintenance and upkeep may be less expensive to buy. As a result, reselling will take longer.
Houses in good shape that do not need considerable repairs and renovations, on the other hand, are much more expensive. Even if you have to spend more up front, you will save a lot of money in the long run and won’t have to worry about house improvements.
As a consequence, while purchasing a house in West Virginia, try to find a balance between these issues. Choose a house that best suits your skills, budget, and time frame.
5. Repair and Renovate the House
Consider how much money will be needed for repairs and improvements, as well as how long it will take. Determine which upgrades will add the most value and if they will be appealing to potential buyers. For homeowners who want to escape West Virginia’s hot and humid summers and cold winters, adding air conditioning and energy-efficient modifications to their home may swiftly increase its value.
Furthermore, power washing the outside, painting the house, fixing a leaking faucet, reglazing and caulking bathtubs, and cleaning the floors are all small but vital jobs that will help you sell your property faster.
6. Resell the Renovated West Virginia House for a Profit
It’s time to put the property back on the market once you’ve finished repairing and renovating it. You have two options for reselling your house in West Virginia. The first choice is to sell by owner (FSBO), while the second is to sell with the assistance of a real estate professional.
Saving money on commissions is one of the numerous advantages of selling your home without the aid of a real estate agent. Even if you sell your West Virginia house on your own, you must pay a buyer’s agent fee (3 percent ). If you want to sell your property quickly, you must be prepared to barter like a pro and complete all of the necessary documentation.
If you don’t want to deal with the hassle of selling the home yourself, you may always hire a professional real estate agent. Contract preparation, negotiations, signing, and closure will be expedited. You will, however, be required to pay them a 3% fee for their services.
How much money do house flippers make in West Virginia?
The average revenue per flip in the US is $60,000, while in West Virginia it’s just around $56,000. This means the average revenue per flip in West Virginia is $4,000 less than the national average. I mean, it makes sense. Affordable housing and an improving quality of life attract a lot of real estate investors in this state, which ultimately leads to more competition and thus lower revenue per flip.
Furthermore, it is also important to understand that the revenue per flip is not the net profit. You will also need to allocate some money for repair and renovations. There may be a wide range of repairs necessary depending on the current state of the home, but if you spend $20,000 fixing up the home. Once you deduct all other costs and charges, you will be left with a net profit of around 10,000 to $15,000.
Thus, it is safe to assume that on average you can make at least $10,000 by flipping a single house in West Virginia. Furthermore, an average real estate investor flips around 4-5 houses per year. That means you can expect to make around $50,000 per year flipping houses in West Virginia full-time.
Overall, flipping houses in West Virginia is an excellent way to begin investing in real estate. Despite the fact that West Virginia isn’t one of the most profitable states for house flipping, it is constantly expanding and has a lot to offer long-term investors. Furthermore, discovering lucrative flips in the Mountain State necessitates a blend of your skills, expertise, and chance. Once you’ve found a fantastic deal on a house in West Virginia, be sure to plan ahead of time, restore the property as needed, and sell it to a high-end buyer.