Highland Creek detached with legal basement suite, 3,200 sq.ft., steps to UTSC
A 3,200 sq.ft. detached in Highland Creek with a city-permitted basement suite and separate entrance, walking distance to UTSC and Centennial College Morningside. The legal two-unit configuration suits a value-add investor or multi-generational owner-occupant, though estimated rent comparables at $2,180/month leave the property cash-flow negative at every financed scenario.
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
Section · Why this passed our floor
What lifts the math here
Current cap
0.20% 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
$302,067 estimated over a 6-month hold using default market reno costs and the underwritten rent source.
Recommended leverage
100% down to reach neutral or positive carry during the conversion window.
Rent backed by
Estimate sourced from city-average 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 | $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 |
Calculated at 4.99% mortgage over 25 years. Rent estimated from city-level rental averages (n=199).
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.
This is a value-add play for an investor or multi-generational buyer who can underwrite both units of the legal two-unit configuration rather than the single-unit rent comparable shown in the model. The home is listed at $1,339,000 with a city-permitted basement secondary suite already in place, removing the permitting risk that typically defines suite-conversion projects. The modeled cap rate of 0.20% reflects a single-unit rent assumption of $2,180 per month; the executable thesis depends on stabilizing both the upper unit and the basement suite at market.
Highland Creek's rental demand is anchored by two named post-secondary institutions within walking distance: University of Toronto Scarborough (UTSC) and Centennial College Morningside Campus. The dual-catchment draws faculty, graduate students, and undergraduate roommates, which suits a five-bedroom above-grade configuration with a main-floor bedroom and 4.5 washrooms. Highway 401 access, minutes away, broadens the commuter pool beyond the campuses. The legalized basement suite, with its own kitchen, bedroom, washroom, and separate laundry, plus an additional basement bedroom with wet bar, gives the property a documented two-unit footprint in a pocket where most competing detached homes operate as single-family rentals.
Execution requires significant equity. At 75% down the estimated monthly cash flow is still negative $1,732.12, and only the 100% cash scenario reaches positive carry at $222.85 per month (0.19% cash-on-cash). The realistic path is a cash or near-cash acquisition, a re-lease of both units at verified Highland Creek student-market rents, and a 60-plus-month hold for appreciation on the dual-campus catchment.
Key features
- Approximately 3,200 sq.ft. of above-grade living space
- 5 bedrooms above grade, including a main-floor bedroom
- 4.5 washrooms across the home
- City-permitted basement secondary suite with separate entrance
- Basement suite includes own kitchen, bedroom, washroom, and separate laundry
- Additional basement bedroom with wet bar area
- Vacant possession available for flexible closing
- Walking distance to UTSC and Centennial College Morningside
- Minutes to Highway 401
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 anchors east Scarborough's student-housing submarket, sitting within walking distance of the University of Toronto Scarborough (UTSC) and Centennial College Morningside Campus. The dual-institution catchment generates persistent rental demand from students, faculty, and staff, particularly for multi-bedroom homes that can be configured around a separate suite.
The pocket sits minutes from Highway 401, giving downtown commuters and east-end employers reasonable drive access. Established detached streets in the neighbourhood see limited new supply, and the legalized secondary-suite layout here aligns with the City of Toronto's recent push to expand multiplex housing in stable residential pockets.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Estimated cap rate of 0.20% and gross yield of 1.95% are well below GTA investor benchmarks; the modeled rent of $2,180/month likely reflects a single-unit comparable and does not capture the legal two-unit income potential.
Property is cash-flow negative at 20%, 35%, 50%, and 75% down scenarios; only 100% cash reaches positive carry at an estimated $222.85/month.
High leverage sensitivity: monthly carry swings from -$6,033.04 at 20% down to +$222.85 at 100% cash.
Rent source is comparables_city_avg rather than local Highland Creek student-rental comps; actual achievable rent across both units may differ materially and should be verified before underwriting.
Student-rental demand is concentrated around UTSC and Centennial academic calendars; vacancy risk is seasonal.
Vacant possession means no in-place tenants or lease documentation; investor must lease both units from scratch.