Lakeside Ajax 4+1 detached with in-law suite potential and direct garage access
Detached 4+1 in South West Ajax listed at $925,000 with a finished basement positioned for in-law suite conversion. Estimated cap rate of 2.34% requires light leverage; positive carry begins at the 75% down scenario.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$925,000
Cap rate
+2.34%
Est. monthly rent
$3,400
Source: comparables_widened
Est. net spread
+$210K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
2.34% 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
$209,962 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 | $323,750 |
| Mortgage principal | $601,250 |
| Land transfer tax | $13,875 |
| Closing costs | $13,875 |
| Total acquisition | $351,500 |
Monthly cash flow
| Estimated rent | +$3,400 |
| Operating expenses | -$1,598 |
| Mortgage payment | -$3,511 |
| Net cash flow | -$1,710/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $170/mo |
| Maintenance reserve | $771/mo |
| Insurance | $385/mo |
| Property management | $272/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=16).
Breakeven
This property turns cash-flow positive at 66.6% 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 ($13,875), and closing costs ($13,875).
Section · Investment Thesis
Why this property.
Suited to a value-add investor with deep equity, this 4+1 detached in Ajax's Lakeside community lists at $925,000 and projects an estimated 2.34% cap rate. The thesis is a basement in-law suite conversion: the finished lower level already has direct garage access, which materially shortens the path to a second-unit configuration. Light leverage is mandatory here. The property only reaches positive carry at the 75% down scenario, where estimated monthly cash flow is $451.23.
South West Ajax sits within walking and short-drive range of Ajax GO Station on the Lakeshore East line, which feeds Union Station and is part of the GO Expansion electrification program. Highway 401 access at Salem and Westney supports the Durham employment corridor, and the broader Lakeside pocket benefits from waterfront trail extensions along Lake Ontario. The home backs onto parkland and walking trails, a scarce attribute in detached inventory at this price band. School catchments in South West Ajax draw family demand from Scarborough and Pickering buyers priced out of inner 416 freehold stock, supporting medium-term rent and resale fundamentals.
Execution favors the 75% down scenario at an estimated $451.23 monthly cash flow, or an all-cash position at an estimated $1,801.75 monthly. Plan a 24 to 36 month hold to legalize the basement suite, lift gross rent above the current $3,400 estimate, and refinance once the two-unit income is seasoned. Exit options include a hold for Durham appreciation or resale to an end-user family once the suite is permitted.
Key features
- 4+1 bedrooms, 3 bathrooms, detached
- Finished basement with direct garage access, suited to in-law suite conversion
- Backs onto parkland and walking trails
- 30 x 10 ft walk-out deck
- Minutes to Highway 401 and Ajax GO Station
- Modern eat-in kitchen with stainless steel appliances
Original MLS description
Beautiful 4+1 bedroom, 3 bathroom home in Ajax's desirable Lakeside community. Features abright open-concept layout, freshly painted main floor, and a modern eat-in kitchen withstainless steel appliances. The finished basement offers potential for an in-law suite withdirect garage access. Enjoy a large walk-out deck (30 x 10 ft) backing onto parkland and walking trails, providingprivacy and scenic views. Located in a quiet, family-friendly neighbourhood, minutes to Hwy401, Ajax GO Station, schools, shopping, parks, and the lake. Perfect for families or investors- book your private showing today! (42861955)
Section · Neighborhood
Where it sits.
South West
South West Ajax's Lakeside community is a family-oriented detached pocket south of Highway 401, within reach of Ajax GO Station on the Lakeshore East line and the Lake Ontario waterfront trail system. Demand is anchored by Durham Region employment, GO commuter access to downtown Toronto, and relative affordability versus comparable Scarborough and Pickering freehold stock.
The immediate street backs onto parkland and walking trails, a scarce feature for detached homes in this price band, which supports both end-user resale demand and long-term rental appeal to family tenants.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: negative cash flow at 20%, 35%, and 50% down scenarios; positive carry only begins at 75% down.
Estimated cap rate of 2.34% is below typical investor underwriting thresholds; thesis depends on executing the basement suite conversion.
Rent estimate sourced from widened comparables rather than direct on-street comps, which increases revenue uncertainty.
In-law suite potential is not a legal second unit; buyer must verify zoning, permits, and fire code compliance before underwriting two-unit income.
No recent sold comparables provided, limiting ARV and resale benchmarking.