I was talking to a fellow Leeds student letting agent last weekend and we were discussing the current state of the market in Headingley and Hyde Park. He commented that anything with Brudenell in the name was guaranteed to be let almost without perspective tenants even wanting to arrange a viewing! Which brings me onto my next investment opportunity.
This 5 bed on Brudenell View is on for just under £250,000 with a current rental yield of £18,200 (or £70pppw). On the face of it that's not a great return, but it has definite potential to achieve more. Just a basic tidy up, and I reckon we'd be able to push that £70pppw upto something nearer £75pppw which would bring the yield upto 8% on a purchase price of £250,000.
However there is potential to dig out the cellar at the front and then re-jig the layout with either two bedrooms in the basement, or the kitchen and living room in the basement and two bedrooms on the ground floor, put a dormer on one of the attic bedrooms and refurbish the whole house to a high standard. This would probably cost around £30,000 - £40,000 but you'd now have a 6 bed renting for around £85pppw, so a gross rent of £26,520 per annum or around 9.5% return.
And as my learned friend said, you might not even have to do any viewings on it to get it let each year.....
