5-level backsplit in Rouge Hill with in-law suite potential, listed at $979,900
Detached 4-bed, 3-bath backsplit in Scarborough's Rouge neighbourhood offering multi-generational layout flexibility and a fenced backyard. Estimated cap rate of 2.07% with positive carry only at 75% down or higher.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$979,900
Cap rate
+2.07%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$221K
6mo hold
Annualized ROI
+45%
preliminary
The Deal
Detached 4-bed, 3-bath backsplit in Scarborough's Rouge neighbourhood offering multi-generational layout flexibility and a fenced backyard.
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 | $342,965 |
| Mortgage principal | $636,935 |
| Land transfer tax | $14,699 |
| Closing costs | $14,699 |
| Total acquisition | $372,362 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$1,660 |
| Mortgage payment | -$3,720 |
| Net cash flow | -$2,030/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $817/mo |
| Insurance | $408/mo |
| Property management | $268/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (24 comps).
Breakeven
This property turns cash-flow positive at 70.5% down.
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 ($14,699), and closing costs ($14,699).
Section · Investment Thesis
Why this property.
This detached 5-level backsplit at 43 Fireside Drive is listed at $979,900 in Rouge Hill, Scarborough. The home offers 4 bedrooms, 3 bathrooms, and a finished lower level the listing describes as suitable for "multi-generational living or in-law suite potential," which is the core investor angle: a potential secondary unit could improve the rent profile beyond the current estimated $3,350 per month derived from 24 widened comparables. On the existing rent assumption, gross annual rent is estimated at $40,200, estimated annual NOI is $20,275.50, and the estimated cap rate is 2.07%.
Leverage sensitivity here is high. At 20% down ($195,980), the estimated monthly mortgage payment is $4,578.15 and estimated monthly cash flow is -$2,888.53, a -15.38% cash-on-cash return. At 35% down ($342,965), estimated monthly cash flow improves to -$2,030.12 (-6.54% cash-on-cash). At 50% down ($489,950), estimated monthly cash flow is still -$1,171.72 (-2.71% cash-on-cash). The property only crosses into positive carry at 75% down ($734,925), where estimated monthly cash flow is +$258.95 (0.41% cash-on-cash). An all-cash purchase of $979,900 produces estimated monthly cash flow of +$1,689.62 and a 2.01% cash-on-cash return. The minimum down payment for neutral or positive carry under current assumptions is therefore 75%.
The investment thesis is not cash flow at typical leverage; it is land and location in a Scarborough pocket near Rouge National Urban Park, GO Transit, and Highway 401, paired with the optionality of converting the lower levels into a legal secondary suite to lift gross rent. Buyers who can underwrite a value-add conversion, or end users with in-law needs offsetting carrying costs, are the natural fit.
Given negative carry at conventional leverage, hold periods should be measured in years, not months. The property suits a 60+ month hold for investors targeting appreciation in east Scarborough and willing to fund either a heavy down payment or a basement suite conversion to bridge the cash flow gap.
Key features
- 5-level detached backsplit, 4 beds and 3 baths
- Finished lower levels flagged for in-law suite or multi-generational use
- Private fenced backyard with deck
- Quiet residential street in Rouge Hill, Scarborough
- Walking distance to schools, parks, and transit per listing
- Listed at $979,900 with estimated $3,350 monthly market rent
Original MLS description
Welcome to this bright and spacious 5-level detached backsplit located on a quiet, family-friendly street in desirable Rouge Hill, Scarborough. Offering a versatile and functional layout, this well-maintained home features generous principal rooms, an inviting living/dining area filled with natural light. The lower levels provide excellent flexibility with finished living space, making it perfect for multi-generational living or in-law suite potential. Enjoy a private, fenced backyard with deck, along with close proximity to schools, parks, transit, and amenities. A rare opportunity to own a classic backsplit with outstanding space and versatility in a sought-after neighbourhood. * Photos Have Been Virtually Staged* (42773955)
All photos
26 additional · click any to expand
Section · Neighborhood
Where it sits.
Rouge
Rouge Hill is an established east Scarborough neighbourhood bordered by Rouge National Urban Park, with access to the Rouge Hill GO Station on the Lakeshore East line and Highway 401 for commuters into downtown Toronto and east into Durham Region. The pocket is dominated by detached postwar housing on deeper lots, with steady end-user demand from families drawn to the parkland, waterfront trails, and local schools.
Demand drivers include continued GO expansion, proximity to the University of Toronto Scarborough campus, and ongoing infill activity along Kingston Road. The area trades at a meaningful discount to central Toronto detached pricing, which underpins the appreciation case for patient capital.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative estimated monthly cash flow at 20%, 35%, and 50% down scenarios; positive carry only achieved at 75% down or higher
High leverage sensitivity: monthly cash flow swings from -$2,888.53 at 20% down to +$1,689.62 at all-cash
Estimated cap rate of 2.07% is below typical investor thresholds for detached GTA product
In-law suite potential is described in the listing but not confirmed as a legal secondary unit; conversion costs and permitting are not modelled
Rent estimate is sourced from widened comparables (24 comps) rather than direct subject-area matches
Listing notes photos have been virtually staged; physical condition should be verified in person
Sqft figure in source data (139) appears to be a data error and should be verified