Introduction

Analysing investment properties is one of the most important skills for any property investor. This guide walks you through how to use platforms like Rightmove, SpareRoom, and deal analyzers to calculate returns and assess whether a property is worth pursuing. We'll go step by step with real examples from Leeds, Manchester, and Liverpool.

1. Tools You Need

• Rightmove – to find properties and check listings.
• Deal Analyzer Spreadsheet – to plug in purchase price, rent, and costs.
• SpareRoom – to check rental demand in the area.
• Zoopla / OpenRent – to compare rents with similar properties.
• Crime Rate Tools – to assess the safety and tenant profile of the area.

2. Setting Search Criteria

On platforms like Rightmove, set clear filters to narrow your property search. For example:

• Location: e.g. Leeds, Manchester, Liverpool.
• Radius: 5 miles around the target area.
• Property type: Houses only.
• Price range: e.g. up to £150,000.
• Bedrooms: Minimum 2 bedrooms (higher demand).
• Untick “Under offer” and “Sold STC” to only view available properties.

3. Analysing a Property Deal

When viewing a property listing, focus on:

• Listing age: Longer listings may indicate motivated sellers.
• Recent price reductions: A good sign sellers are flexible.
• Property condition: Assess refurbishment needs from photos and floorplans.
• Proximity to transport: Properties near stations have stronger rental demand.
• EPC rating: Minimum “E” required to rent in the UK (ideally C or better).

4. Checking Rental Demand

Rental demand determines if your property will stay occupied. On SpareRoom, compare:

• Rooms available: Number of listings for rooms in the area.
• Rooms wanted: Number of people searching for accommodation.
• Ratio: A healthy demand is when rooms wanted far exceed availability (e.g. 8:1).

5. Using Comparables & Rent Checks

Look up similar properties nearby on Rightmove, Zoopla, and OpenRent:

• Check both active rental listings and let agreed properties.
• Ensure comparables match your property type (e.g. 2-bed terrace).
• Be conservative with rent estimates to avoid overestimating ROI.

6. Calculating ROI

Use your deal analyzer spreadsheet to input:

• Purchase price
• Deposit (usually 25%)
• Stamp duty, solicitor, and mortgage fees
• Refurbishment costs
• Expected monthly rent
• Mortgage rate (assume 6% for limited company purchases)
• Management & maintenance (typically 10% each)

This will give you:

• Net monthly cash flow
• Yearly profit
• ROI (Return on Investment)

Most investors aim for 10–12% ROI, though some accept 7–8% depending on strategy.

7. Case Studies

Leeds

2-bed terrace at £130,000. Rent estimated at £925/month. After costs, ROI around 7%. Not ideal for high-yield investors but may suit long-term buy-and-hold.

Manchester

2-bed property at £150,000. Rent £850–£900/month. ROI around 3%. Deal does not stack due to low rental yield relative to purchase price.

Liverpool

2-bed freehold at £100,000. Rent £875/month. ROI around 11.5%. A stronger deal with potential for light refurbishment to boost value further.

Summary & Key Takeaways

• Use the right tools (Rightmove, SpareRoom, Zoopla, OpenRent, Deal Analyzers).
• Set clear search criteria to filter deals quickly.
• Always check rental demand before committing.
• Be conservative with rental estimates and ROI projections.
• Look for ROI of 10–12%+ for strong deals.
• Leeds & Manchester examples showed weaker returns; Liverpool showed stronger yield potential.