I've not had chance to look at this one on Ash Road in Headingley, but I've seen and developed others very similar to it, so I know what can be achieved.
For those of you who know Headingley, Ash Road is a long road, so ideally you want to be at the top end near the Headingley Taps. This is down the other end, but houses still let, and if in good condition for a reasonable rent.
This is currently split over two flats - a 3 bed dowstaris and a 4 bed upstairs. I would be tempted to make upstairs a 3 bed as well which will make it a bit more spacious. You've then got the option to let it to a group of 6 or just let each flat as a 3 bed.
In the downstairs flat, I'd turn open up the bedroom next to the kitchen and make it into a kitchen living room - fine for 3 tenants. I'd take out the utility room and make the basement bedroom bigger, and then have the other two bedrooms on the ground floor.
In the upstairs flat, I'd do the same with the kitchen and living room and make them open plan. I'd get rid of the bathroom on the same floor and make that bedroom bigger and then rejig the top floor to make the bathroom bigger and get rid of one of the bedrooms so you'd be left with a decent size bathroom and two good sized bedrooms.
Do all that to a high spec and you'd be looking at around £80pppw for both flats or just under £25,000 per annum. If you can get the property for around £200,000 and spend £25,000 on it then you're looking at 11% return. Pay £210,000 and spend £40,000 and you're still looking at 10% yield. Now don't all bid at once!!
