Interested in investing in West Virginia?

Question

Looking for people on BP that has experience investing in the state of West Virginia.  Specifically, what was there experience like? How did they find the deals? ETC ETC All comments are welcomed! Just curious about what people have thought about areas here from an out of state perspective.

Anthony Hosea · Answer

@Taylor L. Overall I would agree slightly with the fact that West Virginia is experiencing a decline in most areas but I think that we are due for a rebound. Morgantown has always been a strong area for housing and rental but WVU clearly has a tremendous impact IMO and from what I've been hearing from the Chamber of Commerce here in Beckley, WVU Tech will have a similar effect on the city ( although, obviously not as quickly because of differences in size ). Like @Timothy Doenges mentioned in his reply, I believe wholeheartedly that many areas would benefit from commercial/multi-family rentals. But there just hasn't been development here and I'm currently digging to find out if there is something happening that I'm unaware of. From an investment standpoint, I feel that there are lot of opportunities here and I'm looking to try to bring together some people to make it happen ( that is my goal anyway ). I would love to hear some ideas from you guys! I've also heard from a mentor that a few companies up in the DC area are buying up land in the greenbrier area with the intent to turn the into Resort/Tourist locations so maybe they are thinking long term and a completely different direction than Multifamily/Commerical investments?

Derrick E. · Answer

Excellent post right here. Not much else to add imo. I'm also finishing up with a BRRR right now.

Timothy Doenges · Answer

@Anthony Hosea I’ve got two rentals in Beckley, haven’t had a problem with them and just pulled off a BRRRR on one of them.

Just bought a four-unit vacation rental property near Summersville Lake, put it on AirBnB, and am getting rented out every weekend.

I think the market is here, and the margins certainly are in Beckley since purchase price is low relative to market rents. I wouldn’t want to do long term rentals without a good property manager, though, which I am fortunate to have found.

I’m not quite back to acquisition mode yet after the BRRRR, but once the check clears, I will be looking for more property in Beckley.

The only issue I have had with the area is there is a shortage of multi-family property versus the demand, but the cost to build is too high for the rents. If you build it, they will come. But I’m not in a place to pull the trigger on that kind of deal quite yet.

Timothy Doenges · Answer

Most of what I know about the growth of WVU Tech is by what I see in the area and what I hear from locals, not so much what I am reading in the papers.

First, WVU Tech shows all signs of growth. They have built two new dorms, that are already at capacity. I have a real estate agent friend that is also the WVU Tech sportscast announcer, and he is close with Tech's new provost. He says that in their internal meetings they are planning on an increase of around 1,000 students per year for the next 5 years, which is huge for a town of 18,000 people.

Also, WVU Tech's sports teams are doing incredibly well right now. Their mens' basketball team went 30-5 last year, and drew large crowds. Their women's basketball team was 22-11. Their baseball and softball teams are growing year over year, and baseball as a whole is getting better in the state. The point is...WVU tech does not have a sports complex. They are renting out the local coliseum and using a AAA team's baseball stadium on off-nights right now. And there isn't a ton of flat land in Beckley that would be available to build the kind of complex they are going to need soon. There will be need for more hotels, more student housing, and more classrooms, and the college is completely landlocked by residential housing and downtown.

Again, a great time to pick up SFR's near the school. The land will appreciate (maybe gentrify) when the college starts putting a premium on these properties and the highest and best use changes.

Nathan Smith · Answer

I have researched and spoke with several investors in the Morgantown and Fairmont/Clarksburg areas. Morgantown seems to have overpriced properties - fair to poor condition and high prices. Not a good combination. Some have found success in Fairmont/Clarksburg, but same story with the lack of multifamily properties (some in C/D areas).I am interested in different areas that cash flow well, but still on the lookout.West Virginia is an interesting rental market for sure.

Christopher Brian · Answer

Hi Timothy, I've actually heard this once or twice before from some people who went to school at WVU and then moved to Roanoke, VA. I'm looking for news or stats about the growth related to WVU Tech but haven't found a lot showing significant growth. What do you read to find out about their planned growth?

i did see this https://www.register-herald.co...

Ben Guttman · Answer

@Anthony Hosea ask @Cassidy Burns

Taylor L. · Answer

I've considered it, but my main concern is the severe decline of the state over the years. Morgantown seems to be the only area that's growing, and that growth is heavily dependent on a handful of heathcare employers and the university. I'm certainly open minded about it, though, if I'm wrong about that.

Blake H. · Answer

Anyone interested in a flip opp in Coal City, WV??

Joe Joseph · Answer

Tim,

Any idea about investing or Would you invest in downtown Clarksburg?

Interested in investing in West Virginia?

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