How To Flip Houses In West Virginia: Step By Step (2024)

House flipping has proven to be a powerful wealth-building vehicle for opportunistic investors, and few other states appear to boast more opportunities than West Virginia. Coincidently, there may be no better time to learn how to flip houses in West Virginia than now. The health of the local market may present investors in the Mountain State with an influx of high-quality leads.

According to ATTOM Data Solutions’ latest U.S. Home Equity & Underwater Report, only 29.9% of homeowners in West Virginia are considered “equity rich.” At that rate, West Virginia has the fourth-lowest percentage of equity-rich properties in the country. Consequently, more homeowners may be motivated to sell in West Virginia than in most other states.

That’s not to say that every homeowner without equity represents a potential deal for West Virginia real estate investors, but rather that investors may be more likely to find discounts in West Virginia than in more equity-rich states.

Are you ready to capitalize on West Virginia’s house-flipping industry? Whether you’re new to real estate investing or looking to diversify and grow your portfolio, this guide will teach you how to flip houses in West Virginia, including:

• What Is Flipping Houses?
• West Virginia House Flipping Statistics
• How To Flip Houses In West Virginia (7 Steps)
• How To Find Houses To Flip In West Virginia
• Do You Need A License To Flip Houses In West Virginia?
• How To Flip A House In West Virginia With No Money
• Best Cities To Flip Houses In West Virginia
• Final Thoughts On Flipping Homes In West Virginia

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house from start to finish as a beginner! 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!

What Is Flipping Houses?

House flipping is an exciting real estate investment strategy that can help entrepreneurs in the West Virginia housing market grow their wealth at an attractive rate. At its core, flipping houses is precisely what it sounds like; it revolves around buying properties that would benefit from a few renovations, investing some money to fix them up, and then selling them for a profit. Upon closer inspection, however, flipping houses is a fairly involved process that relies on optimizing profit margins and mitigating risk at every step.

Investors must acquire a promising subject property below market value to increase their odds of completing a successful deal. By acquiring deals for less than their potential worth, investors have a better chance of improving their margins and reducing risk.

In the event a subject property is acquired, the investor will proceed to rehab and fix the house. The idea isn’t to make the nicest home possible but instead to make the nicest house on the street without going over budget. Doing so requires looking at the nearby “comps” and making the recently acquired deal slightly better than them with upgrades that offer the best return on investment (ROI). That way, you can maximize your profits and make the most of your hard work.

Once the home is restored to its desired condition, it’s time for the investor to sell it for more than they have invested up to that point. By showcasing its best features and marketing it effectively, investors should be able to fabricate demand and stir up the competition, resulting in a more significant payday.

To be clear, this is a simplified explanation of flipping single-family homes in West Virginia. The actual process is more involved and requires unique knowledge, skills, and experience. Fortunately, we're here to teach new investors how to flip houses in West Virginia.

Before we jump in, let's start by taking a closer look at the local housing market. Understanding the trends and dynamics will give investors a competitive edge and help them make informed decisions on their next West Virginia home purchases.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

West Virginia House Flipping Statistics

Some of the most essential West Virginia house-flipping statistics investors need to know include but are not limited to the following:

• Average Home Value: $154,979
• 1-Year Appreciation Rate: +3.6%
• Median Days To Pending Sale: 10
• Active Listings: 1,331
• Homes Sold Above List Price: 1%
• Foreclosure Rate: One in every 11,459 homes
• Population: 1,775,156
• Median Household Income: $50,884
• Unemployment Rate: 3%

*All West Virginia housing market statistics are as of Q2 2023.

How To Flip Houses In West Virginia (7 Steps)

Learning how to flip houses in West Virginia is much less intimidating when investors follow the seven steps outlined below:

1. Find A House-Flipping Mentor
2. Research The Local Housing Market
3. Find & Analyze Distressed Properties
4. Raise Capital To Fund The Deal
5. Close On The House
6. Renovate The Property
7. Resell The House

1. Find A House-Flipping Mentor

Flipping real estate alone in West Virginia is possible; plenty of investors do it with a relatively high degree of success. However, rehabbing a home for the first time without help can be overwhelming for new investors. As a result, we’d advise aspiring flippers to seek the assistance of a mentor. Not only will an experienced mentor provide invaluable guidance, but they’ll also give new investors an advantage over their competitors.

While it's important to read reliable sources and conduct thorough research, nothing can replace the valuable lessons investors can learn from someone who has been in their shoes. An experienced mentor is like a great leader who can help sharpen flipping skills and navigate the industry's challenges.

With a mentor, investors can simultaneously minimize risks, increase efficiency, and improve the odds of realizing success. Their guidance and expertise will help beginners make better decisions and avoid costly mistakes. Moreover, a mentor plays a crucial role in instilling confidence in new investors, giving them the courage to take that initial leap into the industry.

Ready to start house-flipping in West Virginia? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!

2. Research The Local Housing Market

Outside of mentors, investors should look to the following sources for information when learning how to flip houses in West Virginia:

• Zillow Housing Data Research
• Zillow’s West Virginia Market Overview
• Redfin’s West Virginia Housing Market Overview
• ATTOM’s West Virginia Real Estate & Property Data
• West Virginia Association Of Realtors
• Realtor.com West Virginia Housing Market Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureaus’ West Virginia Data
• Bureau Of Labor Statistics’ West Virginia Economic Data

3. Find & Analyze Distressed Properties

There are several ways to find and analyze distressed properties in West Virginia, but new investors may have better luck sticking with the 70% rule. While it shouldn’t be confused with a comprehensive analysis, the 70% rule is a great starting point for beginners quickly evaluating a deal.

How does it work? First, investors must calculate the home's after-repair value (ARV)—the estimated worth after it’s been restored to its desired condition. To determine the ARV, look at recent sales of comparable properties, also known as "comps," in the area. These will reveal the home’s potential value once it is rehabbed. More importantly, the ARV indicates how much the house can sell for later.

Once confident they have a firm ARV, investors should multiply it by 70% (or 0.70) and subtract the estimated rehab costs. The resulting value represents the maximum allowable offer (MAO), or the most money an investor can spend to acquire a deal while leaving enough room for safe profits.

It bares worth repeating; the 70% rule shouldn’t be relied on for a comprehensive analysis. Instead, the 70% rule should complement a more thorough analysis.It's a rough estimate that gives a quick snapshot of the deal's feasibility.

As investors gain more experience, they’ll fine-tune their analysis and develop a deeper understanding of the market dynamics that shape deals. However, the 70% rule is an excellent place to start.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

4. Raise Capital To Fund The Deal

With an attractive deal lined up, investors must move quickly to secure flip loans and make cash offers. While new investors may be inclined to use their own money (if they have that luxury), it’s almost always better to borrow the necessary funds.

Firstly, it prevents investors from completely emptying their coffers and facing financial constraints. Secondly, borrowing external funds allows them to scale their business more effectively. Whereas personal funds will likely limit investors to one deal at a time, securing consecutive loans can lead to simultaneous deals.

Loans are the preferred source of funds for most investors, which begs the question: Where can someone learning how to flip houses in West Virginia get the capital they need to do a deal?

Private and hard money loans are the most popular choices among home flippers. Though they come with higher interest rates, the benefits outweigh the costs. By accepting higher rates (often 15% or more), investors gain quick access to funds, giving them a competitive edge in today's market.

5. Close On The House

Closing on a house in West Virginia involves the following steps:

• When the home buyer and seller agree to terms, they lock them in with a purchase and sale agreement. The contract determines essential information like the purchase price, contingencies, closing date, and other important milestones.
• West Virginia is what’s known as an escrow state, meaning real estate transactions typically involve a neutral third party, known as an escrow agent or title company. The buyer or agent will set up escrow to facilitate the impending deal.
• The buyer will mind due diligence by walking through the investment property, conducting a title search, appraisals, exercising contingencies, and anything else to protect their end of the deal.
• The escrow agent or title company is responsible for handling all the necessary documents, making sure everything is in order for the deal to transpire.
• Each party involved in the deal meets to review and sign all necessary documents.
• When the documents are signed, the buyer will place the funds in escrow, where they will sit until the prerequisites are met. When the escrow terms are fulfilled, the funds are dispersed to the seller, and the buyer gets the keys to the house.
• After the closing, the local Recorder’s Office will document the transfer of title.

6. Renovate The Property

Anyone learning how to flip houses in West Virginia must approach their renovations strategically. Improvements must be cost-effective to boost the property’s value as much as possible without spending too much. Pay special consideration to enhancements that increase the property's curb appeal and overall value.

The key here is to exercise restraint and avoid overspending on unnecessary renovations. Instead, prioritize projects with the highest ROI. According to Remodeling Magazine, the upgrades with the best returns in West Virginia and the entire South Atlantic region include:

• Manufactured Stone Veneer: Adding manufactured stone veneers will recoup about 108.9% of the original cost.
• Garage Door Replacement: Replacing a garage door will recoup about 99.1% of the original cost.
• Vinyl Siding Replacement: Replacing siding with vinyl replacements will recoup about 98.5% of the original cost.
• Fiber-Cement Siding Replacement: Replacing siding with fiber cement replacements will recoup about 96.1% of the original cost.
• Electric HVAC Conversion: An electrical HVAC conversion will recoup about 86.7% of the original cost.
• Minor Midrange Kitchen Remodel: Conducting a minor midrange kitchen remodel will recoup about 79.1% of the original cost.
• Vinyl Window Replacement: Replacing windows with vinyl replacements will recoup about 71.9% of the original cost.
• Midrange Bathroom Remodel: Conducting a midrange bathroom remodel will recoup about 64.3% of the original cost.
• Asphalt Shingles Roofing Replacement: Replacing roofing with asphalt shingle replacements will recoup about 64.1% of the original cost.
• Wood Window Replacement: Replacing windows with wooden replacements will recoup about 60.6% of the original cost.

7. Resell The House

It's time to resell the asset once the last renovation is complete, or even slightly before. Not surprisingly, investors will aim to sell the home for more than they have invested. Investors should expect a satisfying profit if the property was purchased below its fair market value and the renovations have significantly increased its worth.

Investors should hire a real estate agent to increase their odds of a bigger payday. While their services may come with an expensive commission, their expertise, and guidance often lead to a higher net gain for investors, frequently offsetting their respective fees and helping with closing costs. A competent agent will likely sell the home faster and at a higher price than an investor working alone.

It's important to remember that investors will only retain a portion of the sale price. After a successful sale, the top priority is repaying the lender, including any accrued interest. Only after fulfilling this obligation can the final step be considered complete.

How To Find Houses To Flip In West Virginia

The best ways to find houses to flip in West Virginia include, but are not limited to:

• Real Estate Agents: Few industry professionals have better local networks than Realtors and agents. Therefore, it’s a good idea for new investors to network with real estate professionals. They have firsthand knowledge about properties for sale and may even know about a few off-market opportunities.
• The MLS: The Multiple Listing Service (MLS) is the largest database of homes for sale in West Virginia. It is a centralized platform where real estate agents list properties available in the market. Access to the MLS grants investors extensive information about homeowners looking to sell.
• Foreclosure Auctions: When homes go through foreclosure and are repossessed by banks, they often prefer to sell these properties to investors at a discounted home price instead of keeping them on their books. As a result, investors should talk with local banks to find out what they have in their inventory.
• Public Records: Information about distressed homeowners, including those motivated to sell, is available as public records. Investors who know where to look can access these records and identify homeowners open to selling their properties at favorable terms.
• Direct Mail Campaigns: A direct mail campaign involves sending marketing materials through mail to a targeted audience, specifically distressed homeowners. By reaching out to these homeowners, investors can identify potential opportunities and engage with sellers who may be interested in selling their properties.

Do You Need A License To Flip Houses In West Virginia?

Flipping houses in West Virginia does not require a real estate license. However, having a license may coincide with some added benefits.

Becoming a licensed real estate agent grants investors access to a nationwide network of like-minded professionals. Perhaps even more importantly, investors with a real estate license can access the MLS without any outside help.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How To Flip A House In West Virginia With No Money?

Investors flipping houses in West Virginia can avoid using their own money by leveraging funds from private and hard money lenders. These lenders replace traditional banks, eliminating the need for credit checks or lengthy approval processes. With private and hard money loans, investors can quickly access cash for short-term financing, facilitating deals at a faster pace.

Additionally, wholesaling allows investors to invest without a significant capital investment. In fact, if wholesalers can assign a contract, they may not need to spend any money at all. In wholesaling, investors receive the sole right to purchase a home and sell their right to do so to cash buyers for a fee, providing an alternative investment approach that doesn't rely on personal cash resources.

Best Cities To Flip Houses In West Virginia

The West Virginia real estate market is full of opportunities, but the following cities may be the best places to flip real estate:

• Charleston: As the capital of West Virginia, Charleston has the state’s largest population and a lot of demand. The city offers a combination of affordable properties, a growing economy, and a demand for renovated homes, making it an attractive location for investors.
• Morgantown: The median home value in Morgantown is well above the state’s median home value. However, while acquisition costs will be higher, so will profit margins. And with plenty of pent-up demand, Morgantown looks like a great place to invest.
• Huntington: A short drive west of Charleston and much more affordable, Huntington has received a lot of attention in recent years as appreciation has taken off. Huntington has seen an influx of demand, which bodes well for anyone who has learned how to flip houses in West Virginia.

Final Thoughts On Flipping Homes In West Virginia

Learning how to flip houses in West Virginia is an excellent move in today’s economy. The volume of equity-rich homeowners, or lack thereof, suggests the pool of potentially distressed homeowners is larger than in most other states. Therefore, it’s reasonable to assume house flippers may find more opportunities to help distressed homeowners and secure their next deal simultaneously. Consequently, doing so may be as simple as following the abovementioned steps.

At Real Estate Skills, our team of experts is ready to provide you with the tools you need for flipping houses in West Virginia. We're committed to providing the knowledge, resources, and support you need to successfully navigate a West Virginia property flip. So avoid common mistakes and maximize your returns by leveraging our expertise.

Let RealEstateSkills.com be your trusted partner in turning your West Virginia house-flipping goals into profitable realities. Get started with us today.