4-Bed Corner Townhome in Morningside, Estimated 7.17% Cap Rate Near UTSC
Renovated 4-bedroom corner townhome listed at $469,000 with an estimated 7.17% cap rate and positive projected cash flow across all five leverage scenarios. Walkable to U of T Scarborough and Centennial College, with two underground parking spots and quick Hwy 401 access.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$469,000
Cap rate
+7.17%
Est. monthly rent
$3,895
Source: comparables_widened
Est. net spread
+$103K
6mo hold
Annualized ROI
+43%
preliminary
The Deal
Renovated 4-bedroom corner townhome listed at $469,000 with an estimated 7.
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 | $164,150 |
| Mortgage principal | $304,850 |
| Land transfer tax | $7,035 |
| Closing costs | $7,035 |
| Total acquisition | $178,220 |
Monthly cash flow
| Estimated rent | +$3,895 |
| Operating expenses | -$1,093 |
| Mortgage payment | -$1,780 |
| Net cash flow | +$1,022/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $195/mo |
| Maintenance reserve | $391/mo |
| Insurance | $195/mo |
| Property management | $312/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (6 comps).
Breakeven
Cash-flow positive at any leverage. Rent covers expenses and any mortgage at the locked rate.
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 ($7,035), and closing costs ($7,035).
Section · Investment Thesis
Why this property.
This Morningside corner-unit townhome at 100 Mornelle Court is listed at $469,000 with approximately 1,600 sqft of interior space, four bedrooms, two renovated bathrooms, a renovated kitchen, and two extra-long underground parking spots. The financial profile is anchored by an estimated monthly rent of $3,895, an estimated annual NOI of $33,628.80, and an estimated cap rate of 7.17%, well above the typical GTA condo-townhome range. Monthly operating expenses are projected at $1,092.60, with no condo maintenance fee or property tax recorded in the provided data; investors should verify both line items with the listing brokerage before acquisition.
Leverage sensitivity is unusually low here because the asset is projected to cash flow positively at every down-payment level. At 20% down ($93,800), the monthly mortgage is estimated at $2,191.20 against estimated monthly cash flow of +$611.20 and a 6.80% cash-on-cash return. At 35% down ($164,150), monthly cash flow rises to an estimated +$1,022.05 at a 6.88% cash-on-cash return. The 50% down scenario produces estimated monthly cash flow of +$1,432.90 at 6.92%, while 75% down delivers +$2,117.65 at 6.95%, and a full cash purchase of $469,000 yields estimated monthly cash flow of +$2,802.40 at 6.96%. Because cash-on-cash compresses only modestly as leverage decreases, the property is genuinely flexible across investor profiles.
The minimum recommended down payment for positive carry is 20%, making this one of the more accessible entry points in the GTA for a cash-flowing four-bedroom rental. Total acquisition cost at 20% down is estimated at $107,870 including land transfer tax of $7,035 and closing costs. A cash buyer would deploy an estimated $483,070 all-in. The rent estimate is sourced from widened comparables (6 comps), so investors should pressure-test the $3,895 figure against current Morningside leasing activity before underwriting.
Hold-period implications favor a multi-year horizon. The combination of student-driven rental demand from UTSC and Centennial College, immediate Hwy 401 access, and TTC connectivity supports stable tenancy, while the renovated interior reduces near-term capex risk. This is a cash-flow-first thesis rather than an appreciation play; investors targeting capital growth should weigh townhome-condo appreciation patterns against freehold alternatives. Listed with Sutton Group Admiral Realty.
Key features
- 4-bedroom corner unit, approximately 1,600 sqft
- Renovated kitchen and two renovated bathrooms
- Laminate flooring throughout
- Two extra-long underground parking spots (fits up to 4 cars per listing)
- Large laundry and storage room
- Walkable to U of T Scarborough Campus and Centennial College
- Direct Hwy 401 and TTC access
- Estimated cap rate of 7.17% on $3,895 estimated monthly rent
Original MLS description
Location! Location! Well Maintained and super clean corner unit 4 Bedroom townhome takes full advantage of abundant natural light. Approx 1600 Sqft. Laminate floors Thru-Out. This beautiful home features a renovated kitchen & two renovated bathrooms. Large Laundry room combined with storage area. Very Rare Two extra long Undergroud parking spots can park 4 cars. Close To U of T Scarborough Campus, Centennial College, Hwy401, Public Transit, Shopping And Park. (42781692)
All photos
23 additional · click any to expand
Section · Neighborhood
Where it sits.
Morningside
Morningside in east Scarborough is anchored by two major post-secondary institutions: the University of Toronto Scarborough Campus and Centennial College's Progress Campus, both within close proximity per the listing. This concentration of students, faculty, and staff supports persistent multi-bedroom rental demand, particularly for units that can accommodate roommate configurations.
The location offers direct access to Highway 401 and TTC bus routes feeding into Kennedy and Scarborough Centre stations, with shopping and parks nearby. Ongoing transit investment in eastern Scarborough, including the Scarborough Subway Extension, supports the long-term connectivity profile of the broader submarket.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
No risks flagged by the QA agent.