Need some guidance in small town

[Brian Humphrey]

I live in Wheeling, WV. Small town in a small state. Going Thursday to a bank and start from that I can get pre-approved for. I am leaning towards starting with duplex or triplex for my first buy and hold. The are averaging from what I see is 30,000-70,000. Now where could I look for all the information I need, like average rents, incomes, etc. that I would need. I will have to say because of the gas a lot of people jacked the prices through the roof I have noticed a lot of complaints where normal people can't pay for 1200-1500 rent so I feel a market for fairness. I have a decent job which every 4-5 months I'll be getting a 5% raise. I don't have a lot of funds on hand. So I will probably have to find some private money down the road. Another question I have is we don't have cookie cutter neighborhoods. And no subdivision so I'm having trouble finding the right info on what I should be paying also. I have looked for investing groups, we have none close enough that I can find. Do I need to set up a business when I do find a deal to put in a trust or anything along those lines? Need a little bit of guidance. Please and thank you

[Nick Janovich]

Hi Brian--

A few things here. 

First, I'm in the Wheeling area as well. The market here is interesting, that is for sure. 

Second, best of luck in your new business. You will learn lots.It has been a year since I formed my LLC and started the hunt. I've learned a ton.

Third, ask 5 people how you should have rentals structured and you will get 5 different answers. Usually no one is terribly wrong and rarely is anyone widely accepted as being right. I have an LLC formed in WV to conduct all my real estate business. I have no desire to mix finances. Having everything in an LLC allows me to run it like a business. In my opinion, this is great since it is..well, a business. As many would tell you, an LLC does not remove all liability from your personal finances. Because of that, I have a $1 million personal umbrella policy written in my name with a rental rider. Between the LLC, the LLC insurance, and the PUP I feel someone comfortable with the liability issues. This was the advice my attorney gave me. Don't pay someone to set up your LLC. You can easily do it yourself. Some on here say LLCs will struggle for loans. Not true at all in this area. Every single bank I talked to would write a commercial loan in the name of the LLC.

Realtors in this area are not very helpful. I have dealt with several. I have lost count of the number of times I've inquired about a property and haven't heard back. They get frustrated when you pass on a property when the numbers don't work. When I look at a property I take my iPad and plug numbers into my spreadsheet. They always look at me funny. Most are use to a SFH going on the market and selling quickly with very little work on their part. Another note, I've not found any deals with Realtors. By the time is makes it on the MLS several people have already passed on it. Price or condition is usually the reason. You'll notice the multi-families on the Wheeling MLS have been there for some time.

I've had luck with craigslist. I bought a duplex on the island that way. I was talking to an investor at the wing fest last night. He said that he has been looking at 35 deals for every 1 that he buys. He has been building due to the lack of good properties in the area.

I'm currently hunting for good land. I'd like to build a 3-4 unit property. 84 Lumber has some good kits available. I also contacted some modular builders. Not sure yet, just another idea I'm always throwing around. 

Any questions, message me. Or add me on Facebook and message me, I won't be creeped out... I'm not on here much.