83 Manchester Street, Derby

Description

Situated in the sought-after area of Manchester Street, Derby, this outstanding four-bedroom property presents a unique opportunity for investors, particularly those looking to expand their portfolio with a high-yield investment. Potentially achieving an exceptional gross yield of 10.64% and an annual gross income of circa £25,000, this property is ready-made for generating consistent rental income. Designed for modern living, the property comprises five spacious double bedrooms, each benefiting from its own en-suite bathroom. One being a studio with useful kitchen. Each room comes furnished to a high standard, offering a modern and stylish living environment that appeals to professional tenants or students alike. The interior has been meticulously maintained and upgraded, ensuring a contemporary feel throughout. The communal kitchen area provides a comfortable space for tenants to cook and socialise, with the useful addition of the breakfast bar. A washing machine is situated in the under stairs cupboard.

Accommodation

Five spacious double bedrooms, each with its own en-suite bathroom; one bedroom is a studio with a kitchen. Furnished rooms, communal kitchen with breakfast bar, and washing machine in the under-stairs cupboard.

Location

Situated on Manchester Street in Derby. The property benefits from excellent transport links, proximity to local amenities, and easy access to educational institutions and employment hubs.

Tenure / Property Information

Investment Analysis

Completed sales on the same street range from £85,000 to £163,000, with the two latest sales at £140,000 and £163,000. The subject is described as a furnished five-bedroom property with five en-suites and one studio-style room, which may support positioning at the upper end of the supplied evidence, but the comparables are generic terraced-house sales and are not confirmed to have equivalent accommodation or use. A cautious evidence-based base GDV is therefore £163,000, with a low scenario of £140,000. No higher supported comparable is available.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led purchase subject to verifying the £25,000 rent estimate, legal use, licensing, room compliance and actual occupancy potential. Bid discipline is essential because the evidenced GDV provides limited margin after the buyer fee.

Works Required

No specific defects or required works are evidenced. The property is described as maintained, upgraded, furnished and ready-made for letting. Allow for inspection, compliance checks, safety certification and any minor works identified, but no supported refurbishment cost can be quantified.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £163,000 base GDV and the guide price plus the stated buyer fee, 75% refinance would be approximately £122,250, leaving indicative cash of about £34,610 tied up before finance, tax and other costs. This is not a strong cash-recycling outcome at the guide unless the purchase price is negotiated below guide, the GDV is higher than the evidenced base case, or refinancing terms differ materially.

Buy-to-Let Analysis

At the £155,000 guide, the auctioneer's circa £25,000 annual gross-income estimate equates to approximately £2,083 pcm and a 16.13% gross yield before costs. Including the stated 1.2% buyer fee, the gross yield is approximately 15.94%. No external rental comparable was identified, and the auctioneer figure is only an estimate; actual room rents, occupancy, bills, management, licensing and compliance costs are unverified. The description also inconsistently refers to four bedrooms while the accommodation states five.

Flip Analysis

At a £163,000 base GDV, the guide purchase plus the stated buyer fee totals approximately £156,860 before works, selling costs, finance and tax, leaving only £6,140 before those items. No supported selling allowance or refurbishment budget is available, so a reliable flip surplus cannot be calculated. The narrow apparent margin makes a flip unattractive at the guide.

Investor Risks & Due Diligence

• The £25,000 annual income is an auctioneer estimate rather than passing rent or achieved rental evidence.

• No sufficiently specific external rental comparable was identified.

• The description is inconsistent, referring to four bedrooms in one place and five bedrooms in the accommodation details.

• HMO or other licensing status, lawful use and room compliance are not supplied.

• No EPC, heating, council tax, insurance, management, utilities or maintenance costs are supplied.

• No detailed condition report or refurbishment cost is supplied.

• Additional fees may be listed in the Special Conditions of Sale.

• The stated 10.64% gross-yield claim is not consistent with £25,000 annual income at the £155,000 guide, which calculates to approximately 16.13% before the buyer fee.

Recommendation

Consider only as an income-led purchase subject to verifying the £25,000 rent estimate, legal use, licensing, room compliance and actual occupancy potential. Bid discipline is essential because the evidenced GDV provides limited margin after the buyer fee.

Strategy Rating

Analysis Confidence

The analysis has five same-street completed sales, a guide price and an auctioneer rent estimate, but lacks property-specific rental comparables, EPC, licensing information, operating costs, tenure confirmation, condition inspection and a supported works budget.