This 5 bed house on Village Street in Burley is in a great spot, especially for professional renters. It’s not far from Burley Park train station and close to plenty of bus routes making commuting into town or nearby areas easy and quick.
The lure of the possibility of having a property that would bring in the rent of 5 tenants is understandably appealing but looking at the ad closer it says to me that you’re unlikely to get that. Not only is this property one of many where too many rooms have been squeezed in to the space, it also only has one bathroom. Obviously you could then use the space better to create another one but this suggests to me that in its current state it wouldn't meet the requirements in order to be granted a HMO licence. If that was the case you wouldn't be able to convert in to a licensable HMO property as the council have put a stop to that.
In any case, this property has only been let to 3 tenants which should probably tell you all you need to know. The floor plan of its current lay out shows how the space isn't being used to its full potential. I would suggest converting it into a 3 bed en-suite property, fitting a new kitchen and re-carpeting & decorating. This way you would be able to achieve a far better rent and if done to a high standard it should bring in around £1,235pcm or £14,820pcm.
The work involved should probably cost around £30k so if you managed to get the property for around £125,000 it should give you a return of nearly 10%, plus with such a high quality property you’d be safe in the knowledge that it would easily let out all year round.