Guildwood detached with separate entrance and second kitchen, suite-conversion candidate at $789,900
A detached Guildwood home priced at $789,900 with separate entrance and second kitchen already roughed in, positioned for a legal secondary-suite conversion. Cash flow turns positive only at 75% down or higher, so this is a value-add execution play rather than a leveraged income trade.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$789,900
Cap rate
+2.20%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$180K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
2.20% 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
$180,402 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 | $276,465 |
| Mortgage principal | $513,435 |
| Land transfer tax | $11,849 |
| Closing costs | $11,849 |
| Total acquisition | $300,162 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,351 |
| Mortgage payment | -$2,999 |
| Net cash flow | -$1,550/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $658/mo |
| Insurance | $329/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 68.6% 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 ($11,849), and closing costs ($11,849).
Section · Investment Thesis
Why this property.
This is a value-add play for an intermediate investor with significant equity to deploy. The mechanic is straightforward: the home already has a separate entrance and a second kitchen, so the lift comes from legalizing a secondary suite and re-underwriting the property on two-unit rent rather than the single-tenancy assumption baked into the 2.2% estimated cap rate. At a $789,900 list price, the strategy only works for buyers comfortable funding the conversion and accepting negative carry during the approval and lease-up window.
Guildwood is a low-turnover detached pocket in southeast Scarborough, bounded by Kingston Road and the Lake Ontario bluffs. Tenant demand is supported by Guildwood GO Station on the Lakeshore East line into Union Station, and by TTC bus service along Kingston Road feeding Kennedy Station on Line 2. The University of Toronto Scarborough campus and Centennial College Progress Campus draw graduate-student and staff renters who target legal basement suites in detached stock. Supply of three-bedroom detached homes is structurally constrained by the mid-century lot fabric, which supports resale exit pricing once the suite is legalized and seasoned.
Recommended structure is the 75% down scenario, where estimated monthly cash flow is +$295.36 on the current single-tenancy rent of $2,800; that figure should improve materially once the lower unit is permitted and leased. A 100% cash buyer sees an estimated +$1,448.62 monthly pre-conversion. Plan a 36 to 60 month hold: permit and complete the suite in year one, season the income for two years, then refinance or list into the Guildwood resale market.
Key features
- Separate entrance plus additional kitchen, infrastructure already in place for a secondary suite
- Detached 3-bed, 3-bath layout in Guildwood, Scarborough
- Listed at $789,900 with estimated cap rate of 2.2% on current-condition rent assumption
- Light cosmetic work flagged in listing rather than a structural rebuild
- Quiet, low-density residential pocket south of Kingston Road
Original MLS description
Welcome to 51 Greyabbey Trail, a fantastic opportunity in the highly sought-after Guildwood community! This spacious home with separate entrance & +1 kitchen is perfect for investors or savvy buyers looking to offset their mortgage. Featuring a functional and versatile layout, it's ideal for a growing family seeking comfort and flexibility. Nestled in a quiet, family-friendly neighbourhood, this property provides the perfect balance of peace and convenience. With generous living spaces and a solid structure, it's ready for your personal touch-just a little TLC will transform it into your dream home or a high-performing investment. Close to schools, parks, transit, and all essential amenities, this is a rare chance to own in one of Scarborough's most desirable pockets. Don't miss out on this investor's delight with endless potential! (42849533)
Section · Neighborhood
Where it sits.
Guildwood
Guildwood is an established lakeside pocket of southeast Scarborough framed by Kingston Road to the north and the Lake Ontario bluffs to the south. The catchment is dominated by mid-century detached stock on deep lots, which limits new supply and keeps owner-occupier demand for renovated three-bedroom homes consistent.
The GO Transit Lakeshore East line runs through Guildwood Station, providing a direct rail link to Union Station, and Kingston Road carries the 12 and 116 TTC bus routes toward Kennedy Station on Line 2. The University of Toronto Scarborough campus and Centennial College Progress Campus sit a short drive north, providing a tenant pool for legal secondary suites.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated monthly cash flow ranges from -$2,241.84 at 20% down to +$1,448.62 at 100% cash, and the property does not reach positive carry until 75% down
Cap rate of 2.2% is thin; the thesis depends on executing a legal secondary-suite conversion to lift NOI
Listing references TLC; budget for cosmetic and likely mechanical updates should be confirmed on inspection
Rent estimate is sourced from widened comparables rather than direct Guildwood lease comps, so achievable rent on conversion should be re-underwritten
Secondary-suite legalization in Toronto requires permits, fire separation, and egress compliance; carrying costs accrue during the approval window