All-brick raised bungalow with separate-entrance lower level in Centennial Scarborough
Three-bed raised bungalow in the Centennial/West Rouge lakeside pocket with a separate-entrance lower level configured for a secondary suite. The income-conversion path is the thesis; current rent comparables do not support positive carry until roughly 75% down.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$899,900
Cap rate
+1.75%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$204K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.75% on the existing single-unit rent. The thesis is the income uplift after the conversion is complete, not today's number.
Projected post-conversion spread
$204,127 estimated over a 6-month hold using default market reno costs and the underwritten rent source.
Recommended leverage
75% down to reach neutral or positive carry during the conversion window.
Rent backed by
Estimate sourced from city-wide comparables, not a CMHC fallback.
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 | $314,965 |
| Mortgage principal | $584,935 |
| Land transfer tax | $13,499 |
| Closing costs | $13,499 |
| Total acquisition | $341,962 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,489 |
| Mortgage payment | -$3,416 |
| Net cash flow | -$2,105/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $750/mo |
| Insurance | $375/mo |
| Property management | $224/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=63).
Breakeven
This property turns cash-flow positive at 75.1% 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 ($13,499), and closing costs ($13,499).
Section · Investment Thesis
Why this property.
Suited to a value-add investor with deep equity who wants a detached freehold near Lake Ontario and a documented path to a two-unit income stream. The mechanic is the existing separate entrance to a lower level that already contains a family room, fourth bedroom, office, and a half bath with laundry, the bones of a legal secondary suite. List price is $899,900 and the in-place rent assumption supports a cap rate of 1.75%, so the thesis depends on lifting NOI, not on buying current income.
Centennial Scarborough sits between Lake Ontario, the Rouge National Urban Park, and the Highway 401 corridor, with Rouge Hill GO on the Lakeshore East line providing a one-seat ride to Union Station. The submarket is anchored by waterfront trails, the Port Union waterfront, and established detached stock, with limited new supply because of park and lakeshore constraints. The listing notes easy access to Highway 401 and GO Transit just minutes away, which keeps the rental pool tied to downtown commuters and Durham-bound professionals. School-aged demand is steady through the Centennial Road and Sir Oliver Mowat catchment area, supporting family rentals on the upper level.
Execution favors the 75% down scenario, where the projected monthly cash flow is essentially flat at -$2.75 and cash-on-cash sits at 0.00%, or an all-cash position generating an estimated $1,311.12 per month. The work is legalizing the lower-level suite, refreshing the upper-level hardwood already noted under existing carpet, and stabilizing two tenancies. Hold 60+ months to capture NOI lift and Lakeshore East ridership growth, with a refinance once the second unit is income-producing.
Key features
- All-brick raised bungalow construction
- Three bedrooms on upper level plus fourth bedroom on lower level
- Separate entrance to lower level with family room, office, and half bath
- Hardwood flooring under existing carpet on upper level
- Natural gas furnace and central air conditioning
- Walking distance to Lake Ontario waterfront trails
- Minutes to Highway 401 and Rouge Hill GO
Original MLS description
Welcome to this all-brick raised bungalow in the sought-after Lakeside community of Centennial / West Rouge. Perfectly situated near Lake Ontario, scenic waterfront trails, beautiful parks, convenient shopping, and top-rated schools, this home offers a lifestyle of comfort and convenience. Commuting is a breeze with easy access to Highway 401 and GO Transit just minutes away. The upper level features hardwood flooring (also under the existing carpet), an open-concept living and dining area, a bright kitchen, and three bedrooms, including a primary bedroom with direct access to the main bathroom. The lower level, with a separate entrance, offers a spacious family room, a fourth bedroom, a dedicated office area, and a large laundry room with a convenient half bath - ideal for multi-generational living or rental potential. Additional highlights include a natural gas furnace and central air conditioning for year-round comfort. Step outside to your private backyard oasis, perfect for relaxing and enjoying the outdoors. This wonderful home is move-in ready and available immediately - a fantastic opportunity in one of Toronto's most desirable lakeside neighborhoods. (42822995)
Section · Neighborhood
Where it sits.
Centennial Scarborough
Centennial Scarborough, often marketed as West Rouge, is a lakeside pocket bounded by Lake Ontario, the Rouge National Urban Park, and Highway 401. Rouge Hill GO on the Lakeshore East line offers frequent service to Union Station, and the Waterfront Trail and Port Union park system anchor the lifestyle draw. Detached supply is constrained by the park and shoreline, supporting long-run pricing for family-sized homes.
Tenant demand skews toward commuters using the 401 and GO, plus families drawn to the established public school catchments and proximity to the lake. The neighborhood retains a low-density, owner-occupier character, which supports value-add conversion strategies tied to secondary suites in raised bungalows.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: monthly cash flow swings from -$2,893.26 at 20% down to +$1,311.12 at 100% cash, a roughly $4,200 spread.
Even at 75% down, projected monthly cash flow is -$2.75, essentially breakeven before any vacancy or repair reserve.
In-place rent assumption of $2,800/month is sourced from widened comparables, not a verified two-unit rent roll; secondary-suite legalization is required to unlock the value-add thesis.
Cap rate of 1.75% is below typical GTA cash-flow thresholds; thesis depends on suite conversion and long-term appreciation, not current income.
Estimated reno and permit costs to legalize the lower-level suite (egress, fire separation, electrical) are not reflected in the financials.
Lakeshore-adjacent location carries exposure to flood and shoreline regulation; due diligence on TRCA mapping is advised.