Detached York U bungalow with basement suite, steps to Finch West Station and LRT
Detached 3+2 bungalow with a separate-entrance basement apartment in York University Heights, listed at $1,135,000 with an estimated 1.08% cap rate. Suited to a value-add investor underwriting the legal second-suite income against rapid transit demand from Finch West Subway and the new Finch West LRT.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,135,000
Cap rate
+1.08%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$259K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.08% 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
$258,787 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-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 | $397,250 |
| Mortgage principal | $737,750 |
| Land transfer tax | $17,025 |
| Closing costs | $17,025 |
| Total acquisition | $431,300 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,783 |
| Mortgage payment | -$4,309 |
| Net cash flow | -$3,291/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $946/mo |
| Insurance | $473/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 84.7% 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 ($17,025), and closing costs ($17,025).
Section · Investment Thesis
Why this property.
This is a value-add play for an investor who can absorb negative carry while formalizing the existing basement apartment as a compliant income suite. The property is listed at $1,135,000 with a separate-entrance lower unit already in place, a second full kitchen, and two additional bedrooms below the main floor. At an estimated 1.08% cap rate on current rent assumptions, the thesis depends on lifting NOI through documented dual-income tenancy and on the location premium attached to a Finch West rapid-transit node.
The submarket trajectory is anchored by two named transit assets: the existing Finch West Subway Station on TTC Line 1 and the new Finch West LRT, which together feed Downtown Toronto, York University, and Vaughan Metropolitan Centre. York University functions as the demand engine for student and staff rentals within this pocket of York University Heights, and Highways 400 and 407 add commuter optionality to Pearson-area employment. The Finch West LRT corridor, now operational along Finch Avenue West, places this Derrydown Road bungalow inside a transit-oriented catchment that the City of Toronto has prioritized for intensification.
Execution favours heavy equity. At 20% down the property bleeds an estimated $4,285.54 per month, and even at 75% down the carry is still negative at $639.87. Only the 100% cash scenario produces positive carry, an estimated $1,017.25 per month at a 1.04% cash-on-cash return. Recommended path: 75%+ down or all-cash, hold 60+ months, document both units, and underwrite the exit on transit-driven appreciation along the Finch West corridor.
Key features
- Detached bungalow, 2,482 sq. ft. of total living space
- 3 bedrooms on main floor plus 2-bedroom basement apartment with separate entrance
- Second full kitchen in lower unit, dual-income configuration
- Steps to Finch West Subway Station (TTC Line 1)
- Direct access to the new Finch West LRT
- Walkable to York University; one stop to Vaughan Metropolitan Centre
- Highways 400 and 407 minutes away
Original MLS description
This versatile 2,482 sq. ft. of total living space detached bungalow offers an incredible opportunity for families and investors alike, featuring a bright 3-bedroom main floor complemented by a complete basement apartment with a separate entrance, 2 additional bedrooms, and a second full kitchen. Whether you're looking for a spacious multi-generational residence or a high-yield investment with dual-income potential, this property delivers the perfect balance of comfort and connectivity in a sought-after neighbourhood. Location, Location, Location. Leave the car at home! You are steps away from the Finch West Subway Station and the new Finch West LRT, giving you rapid access to Downtown Toronto, York University, and Vaughan Metropolitan Centre. For drivers, Highways 400 and 407 are just minutes away. Whether you are a first-time buyer looking for room to grow, or an investor seeking a high-demand rental pocket near York U, this property checks every single box. (42877103)
Section · Neighborhood
Where it sits.
York University Heights
York University Heights is a north-Toronto pocket bounded by York University, Highway 400, and Finch Avenue West. The neighbourhood draws sustained rental demand from the York University student and staff population, and benefits from two named transit assets: Finch West Subway Station on TTC Line 1 and the new Finch West LRT running along Finch Avenue West. Highways 400 and 407 provide direct vehicle access to Vaughan, Pearson, and the 905 employment belt.
The Finch West LRT corridor has been targeted by the City of Toronto for transit-oriented intensification, which over a long hold supports land-value appreciation for detached lots near station stops. Rental demand is anchored by proximity to York University and the Vaughan Metropolitan Centre subway terminus one stop north on Line 1.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: cash flow is negative at 20%, 35%, 50%, and 75% down scenarios; only 100% cash produces positive carry at an estimated $1,017.25/month.
Estimated cap rate of 1.08% is well below GTA freehold investment norms; thesis relies on appreciation along the Finch West transit corridor rather than current yield.
Basement apartment compliance (fire code, egress, zoning second-suite registration) is not verified in the listing and must be confirmed through due diligence.
Rent estimate of $2,800/month is sourced from widened comparables and may not reflect achievable combined rent for both units; re-underwrite with local leasing data.
Student-tenant demand from York University introduces seasonality and turnover risk.
Single-asset concentration: at $1,135,000 list price, all-cash deployment ties up significant capital in one detached freehold.