North Richvale 80-ft frontage land play with prior severance approval, two-lot custom build potential
Detached home on a combined 9,600 sq. ft. parcel in Richmond Hill's North Richvale, positioned as a builder and land-banking opportunity with prior (now expired) severance approval for two 40' x 120' lots. The existing rental yields are thin, so the thesis rests on redevelopment and long-term land value rather than in-place cash flow.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,288,000
Cap rate
+1.01%
Est. monthly rent
$3,100
Source: comparables_widened
Est. net spread
+$293K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
The spread case, in concrete terms
Projected spread
$292,510 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 | $450,800 |
| Mortgage principal | $837,200 |
| Land transfer tax | $19,320 |
| Closing costs | $19,320 |
| Total acquisition | $489,440 |
Monthly cash flow
| Estimated rent | +$3,100 |
| Operating expenses | -$2,013 |
| Mortgage payment | -$4,889 |
| Net cash flow | -$3,802/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $155/mo |
| Maintenance reserve | $1,073/mo |
| Insurance | $537/mo |
| Property management | $248/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=15).
Breakeven
This property turns cash-flow positive at 85.5% 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 ($19,320), and closing costs ($19,320).
Section · Investment Thesis
Why this property.
This is a land-and-development thesis, not a cash flow play. The list price is $1,288,000 for a detached 3-bed, 2-bath home sitting on two combined parcels (50' x 120' + 30' x 120') totaling approximately 9,600 sq. ft. with 80 ft of frontage on a quiet North Richvale crescent. The Committee of Adjustment previously granted severance approval for two 40' x 120' lots suitable for two custom homes of roughly 3,250 sq. ft. each with double-car garages; that approval has expired and will require reapplication, which is the central execution risk and opportunity.
On the rental side, the numbers are challenging. Estimated monthly rent of $3,100 against estimated monthly expenses of $2,013 produces estimated annual NOI of $13,044 and an estimated cap rate of 1.01%, with an estimated gross yield of 2.89%. Leverage sensitivity is high. Estimated monthly cash flow is negative $4,930.61 at 20% down, negative $3,802.31 at 35% down, negative $2,674.01 at 50% down, and negative $793.50 at 75% down. The property only turns cash-flow positive at 100% cash, with estimated monthly cash flow of $1,087.00 and an estimated cash-on-cash return of 0.98%. The minimum down payment scenario that reaches positive carry is 100% cash; no leveraged scenario services itself from rent.
Given those carry economics, the investor profile here is a builder or land banker, not a buy-and-hold landlord. The path to return is severance reapplication followed by either ground-up construction of two custom homes or a resale of the severed lots to a builder. In the interim, the existing residence, which includes a renovated upper-level bathroom, eat-in kitchen with walkout to deck and pergola, a swimming pool, custom European-style wood windows, and a finished lower level with rec room and additional bedroom, can be tenanted to partially offset carry while approvals are pursued.
Hold period should be planned at 36 to 60 months to accommodate severance reapplication, permitting, construction, and absorption, or shorter if the strategy is to flip approved lots. Buyers should size capital for the carry deficit in addition to the purchase, closing costs of $19,320 and land transfer tax of $19,320, and budget for soft costs on the severance file. Anatoli Chtcherbatov at Sutton Group Admiral Realty can walk through the reapplication framework and comparable severed-lot transactions in North Richvale.
Key features
- 80 ft frontage combining two parcels totaling approximately 9,600 sq. ft.
- Prior Committee of Adjustment severance approval (expired, requires reapplication) for two 40' x 120' lots
- Potential build envelope of two custom homes at approximately 3,250 sq. ft. each with double-car garage
- Existing 3-bed, 2-bath detached home with renovated upper bathroom, eat-in kitchen, family room, finished lower level with rec room and extra bedroom
- Landscaped backyard with swimming pool, deck, and pergola
- Custom European-style wood windows and metal gates
- Quiet crescent location in North Richvale, close to golf course, parks, schools, and shopping
Original MLS description
Exceptional Opportunity for End-Users, Builders, and Investors! This rare offering features an impressive 80 ft frontage, combining two parcels (50' x 120' + 30' x 120') totaling approximately 9,600 sq. ft. The property presents excellent potential for severance into two 40' x 120' lots, ideal for constructing two separate custom homes, each approximately 3,250 sq. ft. with double car garage. Nestled on a quiet crescent in the highly sought-after North Richvale community of Richmond Hill, the existing residence offers a well-designed layout with spacious living and dining areas, an eat-in kitchen with walk-out to a deck and pergola, and a cozy family room with access to a private, beautifully landscaped backyard featuring a swimming pool. The main floor also includes a full bathroom and convenient side access to the yard. The upper level boasts three generously sized bedrooms and a large, tastefully renovated luxury bathroom. The lower level offers additional living space with a recreation room and an extra bedroom. Numerous upgrades have been completed, including custom European-style wood windows and metal gates. Ideally located close to a golf course, parks, top-rated schools, and shopping amenities. Please note: Photos are from previous listings. The Committee of Adjustment previously granted severance approval; however, it has expired and will require reapplication. (42814906)
Section · Neighborhood
Where it sits.
North Richvale
North Richvale is an established, low-density residential pocket of Richmond Hill characterized by mature lots, quiet crescents, and steady end-user demand from move-up buyers. The listing cites proximity to a golf course, parks, top-rated schools, and shopping amenities, all of which support land values and absorption for newly built custom homes in the 3,000+ sq. ft. range.
Richmond Hill remains one of the stronger northern GTA municipalities for custom infill, with Yonge Street corridor transit improvements and ongoing intensification north of Highway 7 reinforcing long-term demand. Severed 40-foot lots in this submarket typically attract builder and end-user interest, though buyers should independently verify current zoning, setback, and Committee of Adjustment criteria before underwriting a two-lot exit.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated monthly cash flow is negative in all financed scenarios (20%, 35%, 50%, and 75% down) and only turns positive at 100% cash
Estimated cap rate of 1.01% and gross yield of 2.89% are well below GTA buy-and-hold benchmarks; thesis depends on redevelopment, not rental income
Severance approval has expired and will require reapplication with no certainty of re-approval; buyers should budget for planning, legal, and engineering soft costs
Listing notes photos are from previous listings, so interior condition should be verified on site
Land-transfer tax of $19,320 and closing costs of $19,320 add to capital required
Rent estimate is sourced from widened comparables (15 comps), which may overstate or understate achievable rent for this specific configuration
Construction cost inflation, interest carry during approvals, and absorption risk on two new builds materially affect the development exit