West Virginia Real Estate Investor Checklist

Using This Checklist

Phase 1: Market Research

• Research current West Virginia real estate market trends and statistics
• Identify top 3-5 potential investment cities in West Virginia (Charleston, Morgantown, Huntington, etc.)
• Analyze local economic indicators (job growth, population trends, income levels)
• Research rental rates and vacancy rates in target areas
• Evaluate property value trends over the past 5 years in target areas
• Identify neighborhood revitalization or development projects that may impact property values
• Research local property tax rates in target areas (remember WV average is 0.55%)
• Connect with local real estate agents who specialize in investment properties
• Research areas with economic growth indicators for long-term appreciation potential
• Investigate university towns like Morgantown for rental potential (27.1% of WV properties are tenant-occupied)
• Research flood zone designations in potential investment areas
• Evaluate infrastructure access and utility connections in target areas

Phase 2: Investment Strategy Development

• Define your investment goals (cash flow, appreciation, tax benefits, etc.)
• Select your investment strategy (rental properties, fix-and-flip, BRRRR method, land investment)
• Determine your budget and financing options
• Research West Virginia-specific financing programs and incentives
• Establish criteria for property selection (location, size, condition, price range)
• Create a business plan with specific goals and timelines
• Determine your exit strategy for each potential investment
• Consult with a financial advisor about investment strategy
• Develop relationships with local lenders (crucial for BRRRR method in WV)
• Research emerging neighborhoods in Charleston, Huntington, and Parkersburg for BRRRR strategy
• For land investment, identify scenic locations with tourism potential
• Calculate potential ROI based on average gross profit of $70,000 per flip (Q2 2024)

Phase 3: Legal and Tax Planning

• Determine the best legal entity structure for your investments (LLC, S-Corp, etc.)
• Register your business entity with the West Virginia Secretary of State
• Obtain necessary business licenses and permits
• Set up separate business banking accounts
• Consult with a tax professional familiar with West Virginia real estate tax laws
• Develop a tax strategy that leverages West Virginia's low property tax rates
• Research potential 1031 exchange opportunities
• Establish a record-keeping system for tracking expenses and income
• Research local zoning laws and building codes in target municipalities
• Understand local permitting processes before beginning renovations

Phase 4: Property Acquisition

• Get pre-approved for financing if using a mortgage
• Begin property search based on your established criteria
• Analyze potential properties using investment metrics (cap rate, cash-on-cash return, etc.)
• Conduct thorough property inspections
• Research property history and title
• Verify zoning and permitted uses
• Estimate renovation costs (typical WV renovations range from $17,697 to $79,125)
• Make competitive offer based on market analysis
• Negotiate purchase terms
• Complete due diligence process
• Secure appropriate insurance coverage
• Close on the property
• Calculate holding costs during renovation period
• Consider timing of purchase (summer months typically offer better selling opportunities)

Phase 5: Renovation and Property Improvement

• Create detailed renovation plan and budget (up to $52,000 for typical WV renovations)
• Obtain necessary permits for renovation work
• Hire licensed and insured contractors familiar with West Virginia properties
• Focus on kitchen updates with modern appliances and fixtures
• Consider cost-effective cabinet refacing rather than full replacement when possible
• Update bathroom fixtures and lighting
• Install modern tile and flooring in bathrooms
• Replace worn carpeting with hardwood or quality laminate
• Refinish existing hardwood floors when possible
• Improve curb appeal with landscaping enhancements
• Update exterior paint
• Enhance front door and entryway
• Avoid adding swimming pools (cost exceeds value added)
• Avoid overly customized features
• Avoid high-end upgrades in mid-range neighborhoods
• Schedule regular inspections during renovation process
• Allow buffer time for unexpected renovation challenges

Phase 6: Property Management and Operation

• Develop a marketing plan for your property
• Set appropriate rental rates based on market research
• Create tenant screening criteria and application process
• Develop lease agreements compliant with West Virginia landlord-tenant laws
• Establish a maintenance schedule and budget
• Set up a system for collecting rent
• Develop relationships with local contractors and service providers
• Consider hiring a property management company if not self-managing
• Implement a system for tracking income and expenses
• Prepare for seasonal maintenance specific to West Virginia's climate

Phase 7: Long-term Investment Planning

• Regularly review and update your investment strategy
• Monitor market trends and property values
• Evaluate property performance against investment goals
• Plan for capital improvements to maintain or increase property value
• Consider refinancing opportunities when advantageous
• Explore portfolio expansion opportunities
• Stay informed about changes in West Virginia real estate laws and tax codes
• Develop an exit strategy for each property
• Consider lease options in slower-selling markets
• Maintain cash reserves for investment opportunities
• Join local real estate investment groups for networking and education

Additional Resources