Renovated Morningside bungalow with 2+1 basement suites and separate entrance, near UTSC
Detached Scarborough bungalow listed at $1,088,888 with a renovated main floor and two self-contained basement units accessed via a separate entrance. The single-rent underwrite shows an estimated 1.18% cap rate; the value-add path is legalizing the basement units to capture three income streams.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,088,888
Cap rate
+1.18%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$250K
6mo hold
Annualized ROI
+46%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.18% 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
$249,916 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 | $381,111 |
| Mortgage principal | $707,777 |
| Land transfer tax | $16,333 |
| Closing costs | $16,333 |
| Total acquisition | $413,777 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,725 |
| Mortgage payment | -$4,133 |
| Net cash flow | -$3,059/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $907/mo |
| Insurance | $454/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 83.1% 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 ($16,333), and closing costs ($16,333).
Section · Investment Thesis
Why this property.
Renovated Morningside bungalow with two self-contained basement units and a separate entrance, positioned for a value-add investor focused on suite legalization and multi-generational rental demand. The main floor plus 2-bedroom and 1-bedroom basement units create a three-stream income profile against a list price of $1,088,888. The estimated cap rate of 1.18% reflects a single-rent underwrite; the thesis depends on documenting and stabilizing all three units to lift NOI well above the headline figure.
The submarket is anchored by Centennial College and the University of Toronto Scarborough Campus, both within minutes of the property, which sustains structural demand for room-by-room and suite-level rentals from students, faculty, and adjacent healthcare workers tied to Centenary Hospital. Highway 401 access points feed commuters across the eastern GTA, and the surrounding Morningside catchment is a settled detached-bungalow pocket where new supply is constrained by existing lot patterns. The separate-entrance basement, already built out as a 2-bedroom plus 1-bedroom configuration, aligns with the City of Toronto's Multiplex permissions that allow up to four units on residential lots, giving a defined regulatory path to legalize what is currently described as in-law suite potential.
Execution favors the 100% cash scenario, where estimated monthly cash flow turns positive at $1,074.89 and cash-on-cash is 1.15% on a single-rent basis; every leveraged scenario, including 75% down at an estimated negative $514.91 monthly, carries negative. A realistic plan funds the acquisition with 50% or more down, completes suite legalization over 12 to 18 months, then refinances against documented tri-plex income over a 36 to 60 month hold.
Key features
- Renovated detached bungalow with new furnace, A/C and roof
- 3 bedrooms on main level with hardwood and modern kitchen
- Finished basement with two self-contained units: 2-bedroom plus 1-bedroom
- Separate entrance supporting multi-unit rental configuration
- Minutes from Centennial College and UTSC
- Highway 401 access for eastern GTA commuter routing
Original MLS description
Completely newly renovated detached bungalow located in a desirable, family-oriented Scarborough neighbourhood, ideal for end-users or investors. Features new furnace, new A/C, and a new roof. The main level offers 3 spacious bedrooms, hardwood flooring throughout, and a modern kitchen with quartz countertops and pot lights, creating bright and functional living spaces. The finished basement features two selfcontained units-one 2-bedroom and one 1-bedroom-with a separate entrance, offering excellent potential for extended family living and additional inlaw suites. Conveniently located steps to schools and minutes from Centennial College, University of Toronto (Scarborough Campus), Highway 401, transit, parks, and shopping. (42878921)
Section · Neighborhood
Where it sits.
Morningside
Morningside is a settled detached-bungalow pocket in east Scarborough with stable owner-occupier and multi-generational rental demand. The property sits minutes from Centennial College and the University of Toronto Scarborough Campus, two large post-secondary institutions that anchor consistent rental demand for suite-level and room-by-room product.
Highway 401 access supports commuter routing across the eastern GTA, and local TTC bus service connects to Kennedy and Scarborough subway nodes. The bungalow stock in this catchment has been a focus of multi-unit conversions since the City of Toronto's Multiplex framework expanded as-of-right permissions for up to four units on residential lots.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Estimated cap rate of 1.18% reflects single-rent underwrite; thesis depends on legalizing and stabilizing all three units
All leveraged scenarios show negative monthly cash flow; only the 100% cash scenario is estimated positive at $1,074.89 per month
High leverage sensitivity: monthly carry swings from estimated -$4,012.46 at 20% down to +$1,074.89 at 100% cash
Basement units are described as in-law suite potential; legalization, permits, and fire-separation compliance are required to underwrite multi-unit income
Listed sqft of 65 appears to be a data error and should be verified against MLS measurements
Rent estimate sourced from widened comparables, not subject-specific leases