Over 1-acre Jefferson land assembly play with severance potential for 3 detached or 6 townhome lots
A 155.13 x 291.57 ft lot in the heart of Richmond Hill's Jefferson neighbourhood, listed at $3,299,800 with severance optionality for 3 luxury detached homes or 6 townhomes/semis. This is a land-banking and development play, not a rental cash flow asset, with negative carry across every leverage scenario.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$3,299,800
Cap rate
-0.08%
Est. monthly rent
$4,500
Source: comparables_widened
Est. net spread
+$753K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
The spread case, in concrete terms
Projected spread
$753,303 estimated over a 6-month hold, after carrying and selling costs.
Every property published on 6Yield clears a multi-stage screen — universal financial floor, per-tier quality gate, and an editorial review on listing evidence. These bullets summarize the specific facts that cleared this property’s tier. Estimates only; not financial advice.
Fix-and-flip projection
The spread, before the buy-and-hold math.
Preliminary · adjust scope & uplift
Renovation scope
Projection
Preliminary estimate. Renovation costs use 6Yield default per-sqft figures. Post-renovation value is modeled as a multiple of list price — replace with comparable post-renovation sales for higher precision. Carrying costs include property tax, condo fees if any, and insurance; financing costs not yet modeled.
Section · Buy-and-hold backup
If you held instead. The carrying math, side by side.
Each column shows the actual monthly cash flow and cash-on-cash return at that leverage. Click a column for the full breakdown.
Acquisition
| Down payment | $1,154,930 |
| Mortgage principal | $2,144,870 |
| Land transfer tax | $49,497 |
| Closing costs | $49,497 |
| Total acquisition | $1,253,924 |
Monthly cash flow
| Estimated rent | +$4,500 |
| Operating expenses | -$4,710 |
| Mortgage payment | -$12,526 |
| Net cash flow | -$12,736/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $225/mo |
| Maintenance reserve | $2,750/mo |
| Insurance | $1,375/mo |
| Property management | $360/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=23).
Breakeven
Negative carry at every scenario. Rent does not cover operating expenses; mortgage adds further drag.
Run your own scenario
Move the assumptions. See the math live.
Live result
All figures are estimates only and do not constitute financial advice. The sliders use the same math as the locked five-scenario calculator; only assumptions change. Total acquisition includes the down payment, land transfer tax ($49,497), and closing costs ($49,497).
Section · Investment Thesis
Why this property.
The investment case here is land, not the existing 4-level backsplit. The listing explicitly contemplates severing the over-one-acre parcel into 3 luxury detached lots at 51 x 291.57 ft each, or alternatively 6 semi-detached or townhome lots, with town sewage and town water available at the property line. The site backs onto ravine and conservation, which supports premium end-pricing on any future built product. For a builder or developer, the underwriting question is residual land value after severance, soft costs, and construction, not residential rent.
Treated as a buy-and-hold rental, the numbers do not work at any leverage point. Estimated monthly rent is $4,500 against estimated monthly expenses of $4,709.75, producing an estimated annual NOI of -$2,517 and an estimated cap rate of -0.08% before debt service. At 20% down the buyer carries an estimated monthly mortgage of $15,416.87 and an estimated monthly cash flow of -$15,626.62 (estimated cash-on-cash -24.71%). At 35% down, estimated monthly cash flow is -$12,735.95; at 50% down, -$9,845.29; at 75% down, -$5,027.52. Even an all-cash purchase produces an estimated monthly cash flow of -$209.75 and an estimated cash-on-cash return of -0.07%.
Because no scenario reaches positive carry, the minimum recommended down payment for neutral carry is effectively 100% cash, and even that scenario is marginally negative. Leverage sensitivity is high in absolute dollar terms: monthly carry swings by roughly $15,400 between the 20% and 100% scenarios. The seller's willingness to do a rent-back on the existing home can partially offset carry during the entitlement and severance period, which is the practical bridge for a developer working through York Region and Town of Richmond Hill approvals.
Hold period should be sized to the development timeline, not a rental horizon. A realistic path is 24 to 60 months to carry the land through severance, site plan, servicing, and either a build-and-sell or sale of approved lots. Suitability is limited to experienced builders, developers, or high-net-worth investors comfortable underwriting entitlement risk and carrying negative monthly cash flow throughout the hold. Buyers underwriting this as a rental will be disappointed; buyers underwriting it as a Jefferson infill land play with conservation frontage should focus their diligence on severance feasibility and servicing connection costs.
Key features
- Over 1-acre lot, 155.13 x 291.57 ft, in Jefferson
- Severance optionality: 3 detached lots (51 x 291.57 ft) or 6 semi/townhome lots per listing
- Backs onto ravine and conservation
- Town sewage and town water at property line
- Existing 4-level backsplit, 3,307 sq ft plus finished basement, inground pool
- Heated oversized 4-car garage with 13 ft ceiling
- Seller open to rent-back, offsetting carry during entitlement
Original MLS description
Country Living in the City!! The best of both worlds!! Rare opportunity, builders, investors, home buyers, Take note. Beautiful & Quaint 4 level Backsplit home on property shows pride of ownership! Its simply gorgeous! It has 3307 sq ft of living area plus finished basement. It has a magnificent Rural Setting with Woodsy privacy, south facing rear yard with inground pool and rear yard OASIS!!! Finished basement has large games and recreational rooms. 70 ft long upper decking, south facing at rear. 12 Walkout, heated oversized 4 car garage with 13ft ceiling. Do not wait! Must be seen! A rare find and rare opportunity. Agents act fast, and make your appointment to show this beautiful home and property today! Rare opportunity, develop 6 lots for townhomes/semi-detached or 3 large custom homes or renovate the existing home. Buyers looking for a beautiful home on over (1) acre of prime land backing onto a Ravine and Conservation, you have found it here. Lot size is 155.13 x 291.57 ft (over one acre) in the heart of Richmond Hill. Build 3 Luxury detached homes on 51 x 291.57 ft lots or option (2) build 6 Semi-detached homes or Townhomes. Town sewage and town water at property line. Note: Sellers are willing to do a rent back of the Home!! (42768701)
Section · Neighborhood
Where it sits.
Jefferson
Jefferson is an established North Richmond Hill neighbourhood bordered by Yonge Street and Bathurst, characterized by larger lots, mature tree canopy, and proximity to the Oak Ridges Moraine and conservation lands. The area is anchored by Jefferson Public School and Richmond Hill High catchments, and benefits from access to Highway 404 via Bloomington Road and to GO Transit at Gormley and Richmond Hill stations.
Demand drivers for infill development in this pocket include ongoing migration of move-up buyers from south of Highway 7, scarcity of severable one-acre parcels close to ravine and conservation frontage, and Town of Richmond Hill official plan support for intensification on serviced corridors. Town water and sewer at the property line is a material reducer of servicing risk for a builder.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative cash flow at all five leverage scenarios, including 100% cash (estimated -$209.75/month)
High leverage sensitivity: monthly carry swings approximately $15,400 between 20% down and all-cash
Estimated cap rate of -0.08% means the asset does not pencil as a rental hold
Development thesis depends on severance and site plan approvals from Town of Richmond Hill and York Region, which are not guaranteed
Servicing connection costs, development charges, and parkland dedication are not modelled in the financials provided
Estimated rent of $4,500 is sourced from widened comparables (23 comps), which may not reflect a single-family home of this scale
The listed sqft field shows 278 while the description cites 3,307 sq ft of living area; verify before underwriting
Carrying costs during a 24 to 60 month entitlement and build cycle are substantial and must be reserved for