All-brick raised bungalow in Centennial/West Rouge with separate-entrance lower level near Lake Ontario.
A 3-bedroom detached bungalow in Toronto's lakeside Centennial Scarborough community, featuring a separate-entrance lower level with a fourth bedroom suitable for multi-generational or secondary-suite use. Listed at $899,900 with an estimated cap rate of 1.75%, the property requires substantial equity to approach breakeven on a single-tenant rent assumption.
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
The Deal
A 3-bedroom detached bungalow in Toronto's lakeside Centennial Scarborough community, featuring a separate-entrance lower level with a fourth bedroom suitable for multi-generational or secondary-suite use.
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 |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (63 comps).
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.
This detached raised bungalow at 26 Wichey Road S is listed at $899,900 in the Centennial Scarborough/West Rouge pocket, a mature lakeside neighbourhood near Lake Ontario, the Rouge waterfront trails, and the Rouge Hill GO station. The estimated gross annual rent is $33,600 with an estimated annual NOI of $15,733.50, producing an estimated cap rate of 1.75% and an estimated gross yield of 3.73%. The lower level offers a separate entrance, a fourth bedroom, an office, and a half-bath, providing optionality for a secondary suite that could materially improve the underwriting if a legal second unit is pursued.
Leverage sensitivity on this asset is high. At 20% down ($179,980), the estimated monthly mortgage is $4,204.39 and estimated monthly cash flow is -$2,893.26, a cash-on-cash return of -16.77%. At 35% down ($314,965), estimated monthly cash flow improves to -$2,104.94 (-7.39% cash-on-cash). At 50% down ($449,950), estimated monthly cash flow is -$1,316.62 (-3.31% cash-on-cash). The property only approaches breakeven at 75% down ($674,925), where the estimated monthly cash flow is -$2.75 (-0.00% cash-on-cash). An all-cash purchase ($899,900) produces an estimated monthly cash flow of +$1,311.12, a 1.70% cash-on-cash return.
The minimum recommended down payment for neutral or positive carry on a single-tenant basis is 75%. Investors targeting positive cash flow at conventional leverage would need to add value, most plausibly by legalizing and renting the lower level as a separate unit, which the existing layout (separate entrance, full kitchen potential, fourth bedroom) supports but is not currently underwritten. Hold-period implications favour a long horizon: this is a land-and-location play in an established lakeside Toronto neighbourhood with multi-generational owner-occupier demand, not a yield asset.
The property suits an appreciation-focused investor, a portfolio builder house-hacking the lower suite, or a cash buyer seeking modest yield with a long-term Toronto land position. Underwriting assumes the conservative single-tenant rent estimate of $2,800; an executed secondary-suite strategy would change the cash-flow profile but carries permitting, financing, and execution risk that this analysis does not credit.
Key features
- Detached all-brick raised bungalow on a quiet residential street
- 3 bedrooms and 2 bathrooms above grade plus a fourth bedroom and half-bath below
- Separate entrance to the lower level supporting secondary-suite or multi-generational use
- Hardwood flooring on the main level (also present under existing carpet per listing)
- Natural gas furnace and central air conditioning
- Walking distance to Lake Ontario waterfront trails and parks
- Minutes to Highway 401 and Rouge Hill GO station
- Move-in ready with immediate possession available
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 grouped with the adjacent West Rouge community, is a low-density lakeside Toronto neighbourhood bordered by Lake Ontario to the south and the Rouge National Urban Park to the east. The area is served by the Rouge Hill GO station on the Lakeshore East line, providing direct rail access to Union Station, and by Highway 401 for east-west commuting. Local demand drivers include top-rated public schools, waterfront trails, Port Union Village amenities, and proximity to the University of Toronto Scarborough campus.
The housing stock is dominated by mature detached homes on generous lots, which supports stable owner-occupier demand and limits new supply. Rental demand in the immediate pocket is thinner than in higher-density Scarborough nodes, which is reflected in the conservative $2,800 estimated monthly rent drawn from a widened comparable set of 63 properties.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: property only approaches breakeven at 75% down on the underwritten single-tenant rent
Negative estimated cash flow at 20%, 35%, and 50% down scenarios
Estimated cap rate of 1.75% is below prevailing mortgage rate of 4.99%, indicating negative leverage
Secondary-suite/value-add thesis requires permitting and capital not modeled in current underwriting
Rent estimate sourced from widened comparable set (63 properties), suggesting limited direct comparables in the immediate pocket
Property tax shown as $0 in source data; buyers should verify actual municipal tax assessment before closing