Malvern bungalow with finished basement, separate entrance, set up for two-unit conversion.
Detached 4+2 bungalow in Malvern with a finished lower unit, separate entrance, and private laundry, priced at $820,000. The income-conversion setup targets value-add investors willing to formalize the secondary suite over a multi-year hold.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$820,000
Cap rate
+2.77%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$186K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
2.77% 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
$185,550 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 | $287,000 |
| Mortgage principal | $533,000 |
| Land transfer tax | $12,300 |
| Closing costs | $12,300 |
| Total acquisition | $311,600 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$1,461 |
| Mortgage payment | -$3,113 |
| Net cash flow | -$1,223/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $683/mo |
| Insurance | $342/mo |
| Property management | $268/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=24).
Breakeven
This property turns cash-flow positive at 60.5% 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 ($12,300), and closing costs ($12,300).
Section · Investment Thesis
Why this property.
This listing suits a value-add investor or house-hacker pursuing an NOI lift through a legalized secondary suite. The upper unit holds 4 bedrooms and 1 bathroom; the lower unit holds 2 bedrooms, 1 bathroom, a separate entrance, and private laundry, which is the core mechanic of the thesis. At the $820,000 list price, estimated cap rate sits at 2.77% on estimated monthly rent of $3,350, so returns depend on tightening operations and pushing rent toward legal-suite market levels rather than on day-one yield.
Malvern sits in northeast Scarborough at Finch and Tapscott, served by TTC bus routes feeding Sheppard East and Scarborough Centre, with the listing noting TTC at the doorstep and minutes to Highway 401. The catchment includes the Malvern Town Centre retail node and Centennial College Progress Campus to the south. Demand is supported by the description of a safe, family friendly neighbourhood with steps to schools, parks, shopping, library and hospital. Scarborough's planned transit and hospital reinvestment, combined with Malvern's bungalow stock on 40-foot frontages, anchors the long-run rental base for a legal two-unit configuration.
The minimum recommended down payment is 75%, where estimated monthly cash flow turns positive at $692.28 and cash-on-cash reaches 1.30%. At 50% down the property still carries an estimated $504.93 monthly shortfall, so leverage discipline is essential. Execution involves permitting the lower unit as a legal secondary suite, stabilizing both tenancies, and holding 36 to 60 months to capture rent growth and Scarborough's transit-driven re-rating before a refinance or resale.
Key features
- Detached bungalow, 4 bedrooms up plus 2 down
- Finished basement with separate entrance and private laundry
- 40-foot front lot with 4 parking spots
- Private backyard described as oversized and park-like
- Configured as upper/lower two-unit for house hacking or long-term rental
- Walking distance to TTC, schools, parks, library, and hospital
- Minutes to Highway 401
Original MLS description
INVESTOR SPECIAL! Income-Generating Bungalow in Prime Finch & Tapscott Area Spacious and well-maintained bungalow on a large 40 ft front lot A perfect opportunity for investors or first-time buyers looking to live and earn! The finished basement, with separate entrance extends the living space. This home is a great candidate for a secondary unit to subsidize your carrying costs. With 4 parking spots and an oversized, park like, private backyard, this home is not to be missed Upper Unit: 4 Bedrooms | 1 Bathroom Lower Unit: 2 Bedrooms | 1 Bathroom | Separate Entrance | Private Laundry Bright, functional layout in both units. Lower-level laundry for tenant convenience Situated in a safe, family friendly neighbourhood Ideal setup for house hacking or long-term rental investment. Unbeatable Location: TTC at your doorstep Steps to schools, parks, shopping, library & hospital Minutes to Highway 401 and all major amenities Whether you're looking to grow your investment portfolio or get into the market with income support, this is a rare opportunity you don't want to miss! make sound nice. (42865576)
Section · Neighborhood
Where it sits.
Malvern
Malvern is a northeast Scarborough community centred on Finch Avenue East and Neilson/Tapscott, characterized by 1970s-1980s detached bungalow stock on wider lots than most GTA infill nodes. The area is served by TTC surface routes connecting to Sheppard East and Scarborough Centre, with Highway 401 access a short drive south.
Local demand drivers include Centennial College Progress Campus, Malvern Town Centre, and proximity to Rouge National Urban Park. The tenant pool is steady through multi-generational households and student/staff demand from Centennial, which supports two-unit bungalow conversions in this submarket.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated monthly cash flow is negative at 20%, 35%, and 50% down scenarios; only the 75% down and 100% cash scenarios produce positive carry.
Estimated cap rate of 2.77% is below typical financing costs, so returns depend on executing the legal secondary-suite conversion and rent growth.
Secondary-unit legalization requires municipal permitting, fire separation, and possible electrical upgrades; budget and timeline should be confirmed before close.
Rent estimate sourced from widened comparables rather than tight local comps; actual achievable rents may vary.
Sqft field in listing data appears incorrect at 102; verify floor area on site before underwriting.