184 Grimsby Road, Cleethorpes, Lincolnshire DN35 7EZ

Description

A freehold six-bedroom terraced house run as an HMO, licensed for six occupants and currently fully tenanted. Fully let currently and achieving an income of £3,813.33 per calendar month (£45,760 per annum). Bills are included in the rent and come to about £621 a month, leaving net income of £38,307 a year. A net income of £38,307 offers a yield of 15.32% against the guide price.

Accommodation

Six large double bedrooms, all en-suite. Four rooms have their own kitchenettes; the two ground-floor rooms share a communal kitchen. Internal size: 1,572 sq ft (146 sq m). Room rents: Room 1 £120 per week; Room 2 £120 per week; Room 3 £160 per week; Room 4 £165 per week; Room 5 £150 per week; Room 6 £165 per week. Total £880 per week, £3,813.33 per month and £45,760 per annum.

Location

The property is ideally located near Cleethorpes and is well connected for working tenants. There is a bus stop directly outside the house, Cleethorpes railway station is about a 20-minute walk away, and the hospital is only a 10-minute drive.

Tenure / Property Information

Investment Analysis

The £250,000+ guide is supported by the stated fully let HMO income and the auctioneer's stated 15.32% net yield against the guide. The closest supplied evidence is weaker: 198 Grimsby Road sold for £245,000 in 2025 but is described as detached, while the other nearby sales are conventional terraced or flat properties and are not directly comparable to a licensed six-bedroom HMO. The guide should therefore be treated as the working value assumption, not a formal valuation. No independent HMO rental comparable or valuation evidence is supplied.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led, fully tenanted HMO investment if tenancy, licensing and operating-cost evidence are independently verified. Do not rely on a BRRR or flip exit at the guide price without stronger valuation and cost evidence.

Works Required

No specific defects or refurbishment works are evidenced. Allow for inspection, ongoing maintenance and compliance checks associated with the six-occupant HMO. The EPC is rated C with stated potential for B, but no improvement cost is supplied.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the guide as the working GDV and no quantified refurbishment allowance because no works are evidenced, total known acquisition cost is £262,000 including the buyer premium. A 75% refinance against £250,000 would provide approximately £187,500, leaving indicative cash of £74,500 before finance, tax and other costs. The supplied figures do not support a cash-out BRRR outcome at this price.

Buy-to-Let Analysis

The property is stated to be fully tenanted at £3,813.33 pcm, or £45,760 annually. Bills are approximately £621 pcm, producing stated net income of £38,307 annually and a stated 15.32% net yield against the £250,000 guide. Including the 4.8% buyer premium of £12,000, gross yield on the known £262,000 purchase cost is approximately 17.47%. This analysis excludes finance, tax, maintenance, voids and any unknown special-condition fees.

Flip Analysis

A flip assessment is not supported because no refurbishment budget, selling-cost allowance, condition report or reliable HMO resale comparable is supplied. On the working £250,000 GDV, the known purchase cost including buyer premium is already £262,000 before selling, finance, tax or works costs, so no surplus is demonstrated.

Investor Risks & Due Diligence

• The stated income and full-tenancy position require verification, including tenancy terms, rent receipts and occupancy continuity.

• Bills are included in rent and are approximately £621 per month; actual future utility and operating costs may differ.

• The supplied sold comparables are not directly comparable HMO evidence, with the closest 2025 sale described as detached.

• No condition survey or refurbishment budget is supplied, so maintenance and compliance costs are unquantified.

• The 4.8% buyer premium is included in the calculation, but additional fees may be listed in the Special Conditions of Sale.

• The 75% refinance illustration depends on a £250,000 valuation assumption and is not a lender valuation.

Recommendation

Consider only as an income-led, fully tenanted HMO investment if tenancy, licensing and operating-cost evidence are independently verified. Do not rely on a BRRR or flip exit at the guide price without stronger valuation and cost evidence.

Strategy Rating

Analysis Confidence

Current rent, stated net income, occupancy, HMO licensing, tenure, EPC, guide price and buyer premium are supplied. Confidence is reduced by the absence of independent HMO rental comparables, condition/works information, council tax and operating details, finance costs, and special-condition fees.