Highland Creek 5-bed detached with city-permitted basement suite near UTSC
Approximately 3,200 sq.ft. detached home in Highland Creek with a legalized secondary suite and separate entrance, walking distance to UTSC and Centennial College Morningside. Listed at $1,339,000 with vacant possession; rental math is tight at this price using city-average rent comparables.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,339,000
Cap rate
+0.20%
Est. monthly rent
$2,180
Source: comparables_city_avg
Est. net spread
+$302K
6mo hold
Annualized ROI
+45%
preliminary
The Deal
Approximately 3,200 sq.
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 | $468,650 |
| Mortgage principal | $870,350 |
| Land transfer tax | $20,085 |
| Closing costs | $20,085 |
| Total acquisition | $508,820 |
Monthly cash flow
| Estimated rent | +$2,180 |
| Operating expenses | -$1,957 |
| Mortgage payment | -$5,083 |
| Net cash flow | -$4,860/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $109/mo |
| Maintenance reserve | $1,116/mo |
| Insurance | $558/mo |
| Property management | $174/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_city_avg (199 comps).
Breakeven
This property turns cash-flow positive at 97.2% 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 ($20,085), and closing costs ($20,085).
Section · Investment Thesis
Why this property.
3 Windrush Trail is positioned as a multi-generational or student-rental play in Scarborough's Highland Creek pocket. The home offers five bedrooms above grade, 4.5 washrooms, a finished basement with a city-permitted secondary suite (separate entrance, kitchen, bedroom, washroom, and separate laundry), and an additional basement bedroom with wet bar. Walking proximity to University of Toronto Scarborough and Centennial College Morningside Campus underpins the income thesis, particularly for room-by-room student leasing, which is not reflected in the city-average comparable rent figure used here.
On the underwriting provided, the property does not pencil as a conventional buy-and-hold rental. Estimated gross annual rent is $26,160 against monthly operating expenses of $1,957.15, producing annual NOI of $2,674.20, a cap rate of 0.2%, and a gross yield of 1.95%. These figures are driven by a city-average rent input of $2,180/month across 199 comparables; an owner executing a multi-tenant student strategy with the legal basement suite could see materially different top-line rent, but that is not modeled here and should be validated independently.
Leverage sensitivity is high and uniformly negative until full cash. At 20% down, estimated monthly cash flow is -$6,033.04 with a cash-on-cash return of -23.51%. At 35% down, cash flow is -$4,860.06 (-11.46%). At 50% down, cash flow is -$3,687.08 (-6.23%). At 75% down, cash flow is -$1,732.12 (-1.99%). Only a 100% cash purchase reaches positive territory at +$222.85/month and a 0.19% cash-on-cash return. Minimum recommended down payment for non-negative carry on the modeled rent is therefore 100% cash, and even that is barely breakeven.
The investment case here is not the modeled cap rate. It is the combination of a legalized two-unit configuration, vacant possession allowing immediate re-tenanting at market terms (potentially by-the-room to UTSC and Centennial students), and long-hold land value in an established Scarborough neighbourhood with Highway 401 access. Buyers should plan on a 60+ month hold, treat the city-average rent figure as a conservative floor, and stress-test their own rent assumptions before transacting.
Key features
- Approximately 3,200 sq.ft. detached on Windrush Trail
- 5 bedrooms above grade including a main-floor bedroom
- 4.5 washrooms across the home
- City-permitted (legalized) basement secondary suite with separate entrance
- Basement suite includes own kitchen, bedroom, washroom, and separate laundry
- Additional basement bedroom with wet bar for added flexibility
- Walking distance to UTSC and Centennial College Morningside Campus
- Minutes to Highway 401
- Vacant possession available for flexible closing
- Ample parking with no common walkway
Original MLS description
Located in the highly sought-after Highland Creek community, this spacious detached home offers approximately 3200 sq.ft. of functional living space ideal for large families, multi-generational living, or income potential. Featuring 5 spacious bedrooms above grade (including a convenient main-floor bedroom), 4.5 washrooms, multiple living areas, and a finished basement with a CITY-PERMITTED secondary suite and separate entrance, this home provides exceptional flexibility for homeowners and investors alike. The legalized basement suite includes its own kitchen, living space, bedroom, washroom, and separate laundry access, creating excellent rental income potential or comfortable in-law accommodation. An additional basement bedroom with wet bar area offers even more versatility. Enjoy a bright and practical layout with no common walkway, ample parking, and vacant possession available for flexible closing. Conveniently located within walking distance to University of Toronto Scarborough (UTSC), Centennial College Morningside Campus, schools, parks, transit, and minutes to Highway 401.A rare opportunity to own a versatile family home with legal income potential in one of Scarborough's most desirable neighbourhoods. (42828085)
Section · Neighborhood
Where it sits.
Highland Creek
Highland Creek is an established east Scarborough neighbourhood anchored by the University of Toronto Scarborough (UTSC) and Centennial College's Morningside Campus, both within walking distance of the subject property. The student population creates persistent rental demand, particularly for multi-bedroom homes that can be leased by the room, while Highway 401 access and TTC service support broader commuter demand.
The area is predominantly low-rise residential with mature trees, single-family detached stock, and steady end-user demand from families. Long-term drivers include continued enrollment growth at UTSC, infrastructure improvements along the Eglinton East corridor, and the relative affordability of detached product compared with central Toronto.
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 marginally positive at 100% cash
Estimated cap rate of 0.2% and gross yield of 1.95% are very low; the underwriting uses a city-average rent of $2,180/month which likely understates achievable rent for a 5-bed plus legal suite configuration
Property tax shown as $0 in source data; buyers must verify actual municipal taxes before closing as this will further reduce NOI
Student-rental strategies carry concentration risk tied to UTSC and Centennial enrollment cycles and require active management
Large absolute capital requirement: $1,379,170 estimated total acquisition cost at 100% cash
Cash-on-cash return is negative in every financed scenario, ranging from -23.51% at 20% down to -1.99% at 75% down