Renovated Lorne Park-boundary detached with walk-out lower level and in-law suite potential
A renovated 3-bed, 3-bath detached home in Clarkson Village within the Lorne Park School boundary, featuring a walk-out lower level with kitchenette and separate laundry. The property is positioned as a long-hold appreciation play given negative carry across all financed scenarios.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,088,000
Cap rate
+1.38%
Est. monthly rent
$3,000
Source: comparables_widened
CF at 100% cash
+$1,250/mo
+1.3% CoC
Hold period
60+ mo
planned
The Deal
A renovated 3-bed, 3-bath detached home in Clarkson Village within the Lorne Park School boundary, featuring a walk-out lower level with kitchenette and separate laundry.
Section · Financial Reality
Five ways to buy. The 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 | $380,800 |
| Mortgage principal | $707,200 |
| Land transfer tax | $16,320 |
| Closing costs | $16,320 |
| Total acquisition | $413,440 |
Monthly cash flow
| Estimated rent | +$3,000 |
| Operating expenses | -$1,750 |
| Mortgage payment | -$4,130 |
| Net cash flow | -$2,880/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $150/mo |
| Maintenance reserve | $907/mo |
| Insurance | $453/mo |
| Property management | $240/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (25 comps).
Breakeven
This property turns cash-flow positive at 80.3% 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 ($16,320), and closing costs ($16,320).
Section · Investment Thesis
Why this property.
Listed at $1,088,000, this Clarkson Village detached home is located on the boundary of the Lorne Park school catchment, one of Mississauga's most demand-resilient family submarkets. The home has been renovated with hardwood floors, a new open-concept kitchen with granite counters, and a walk-out lower level containing two additional bedrooms, a kitchenette, and separate laundry, giving an owner-occupant or investor the option to operate the basement as an in-law suite or secondary rental unit. Estimated monthly rent is $3,000 against monthly operating expenses of $1,750, producing annual NOI of $15,000 and an estimated cap rate of 1.38% with a gross yield of 3.31%.
Leverage sensitivity on this property is high and the cash-flow math is unambiguous: at 20% down ($217,600), the estimated monthly mortgage payment is $5,083.20 and projected monthly cash flow is -$3,833.20, a cash-on-cash return of -18.38%. At 35% down ($380,800), monthly cash flow improves to -$2,880.10 (-8.36% cash-on-cash). At 50% down ($544,000), monthly cash flow is still -$1,927.00 (-4.01%). At 75% down ($816,000), the property approaches breakeven at -$338.50 per month (-0.48%). Only at a 100% cash purchase ($1,088,000) does the property turn positive, at an estimated $1,250 per month and a 1.34% cash-on-cash return.
There is no financed scenario in this model that produces positive carry; the minimum recommended down payment to approach neutral carry is 75%, and outright cash is required for positive monthly cash flow. Investors using leverage should expect to fund a meaningful monthly shortfall from outside capital, and the thesis must rest on long-term appreciation in the Lorne Park school zone, the optionality of the walk-out lower unit to lift gross rent, and proximity to the Clarkson GO Station rather than on near-term yield.
This is an appreciation-and-optionality hold suited to a buyer with a 60+ month horizon, ideally a cash buyer, an end-user who values the school catchment, or an investor who plans to legalize and stabilize the lower-level unit to materially improve the rent assumption. The renovated condition reduces near-term capex risk, but underwriting should stress-test rate, vacancy, and the assumption that a single market rent of $3,000 reflects the property's full income potential.
Key features
- Detached 3-bed, 3-bath home in Lorne Park school boundary
- Renovated main level with hardwood floors and new open-concept kitchen
- Walk-out lower level with two additional bedrooms, kitchenette, and separate laundry
- In-law suite or secondary rental unit potential on lower level
- Backs onto trails and a playground
- Minutes from Clarkson GO Station on the Lakeshore West line
Original MLS description
Rare opportunity to own a detached home in the highly coveted Lorne Park School boundary at an incredible price point! Perfectly situated on the border of Lorne Park in the heart of Clarkson Village, this immaculately renovated 3-bedroom, 3-bathroom residence is the quintessential starter home for the discerning family. The main level welcomes you with gleaming hardwood floors and a spectacular brand-new open-concept kitchen, complete with premium granite countertops, a custom backsplash, and a large center island designed for gathering. The seamless flow continues to the upper level, ensuring a cohesive and modern feel throughout. The walk-out lower level is a true game-changer, offering a spacious recreation room with durable vinyl flooring. With two additional large bedrooms, a convenient kitchenette, and separate laundry, this level provides incredible potential for a private in-law suite or a mortgage-helping rental unit. Step outside to a backyard that serves as your private oasis, backing directly onto lush trails and a playground essentially extending your outdoor living space into nature. Located just minutes from the Clarkson GO Station, boutique shopping, and vibrant entertainment, this home offers the prestige of a world-class school district with the convenience of urban amenities. Move-in ready and priced to sell, this is a must-see property that checks every box on your list. (42865205)
Section · Neighborhood
Where it sits.
Lorne Park
Clarkson Village in south Mississauga is an established, transit-anchored neighborhood centered on the Clarkson GO Station, which provides direct Lakeshore West service to downtown Toronto. The property sits on the border of the Lorne Park school boundary, a catchment that has historically commanded a price premium within Mississauga due to consistent family demand and limited detached inventory.
The immediate area combines mature residential streets with boutique retail along Lakeshore Road and proximity to waterfront parks and trails. Demand drivers include GO Transit access, the Lorne Park school designation, and ongoing intensification along the Lakeshore corridor, all of which support a long-duration appreciation thesis rather than a near-term cash-flow thesis.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: negative monthly cash flow in all financed scenarios (20%, 35%, 50%, and 75% down)
Property only produces positive carry at 100% cash; financed buyers must fund monthly shortfalls
Estimated cap rate of 1.38% is low and rent assumption of $3,000/month is sourced from widened comparables
Rent comparable set was widened (25 comps) which may not reflect a legalized secondary suite
Lower-level kitchenette and secondary unit potential are not confirmed as legally registered units
Sqft figure in listing data (139) appears to be a data anomaly and should be verified
No recent sold comparables available to anchor valuation