West Hill 4-level backsplit with in-law suite and separate entrance, listed at $889,000
A renovated multi-generational detached in West Hill with two kitchens, two separate entrances, and a lower in-law suite supporting an income-conversion thesis. Estimated cap rate of 1.79% with positive carry only at 75% down or higher.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$889,000
Cap rate
+1.79%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$200K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.79% 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
$199,742 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 | $311,150 |
| Mortgage principal | $577,850 |
| Land transfer tax | $13,335 |
| Closing costs | $13,335 |
| Total acquisition | $337,820 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,475 |
| Mortgage payment | -$3,375 |
| Net cash flow | -$2,050/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $741/mo |
| Insurance | $370/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 74.5% 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 ($13,335), and closing costs ($13,335).
Section · Investment Thesis
Why this property.
This property suits a value-add investor or portfolio builder targeting a legal two-unit configuration in Scarborough's West Hill. The mechanic is straightforward: the layout already supports a lower in-law suite with a separate entrance and a second kitchen, so the path to incremental NOI is documentation and tenanting rather than heavy construction. At the $889,000 list price, an estimated 1.79% cap rate reflects current single-tenant rent assumptions, not the stabilized two-unit potential a buyer would underwrite after suite legalization.
West Hill sits in southeast Scarborough, framed by the Lake Ontario shoreline and the U of T Scarborough and Centennial College catchments. The listing notes proximity to U of T Scarborough and Centennial College, both meaningful demand anchors for tenants and end-user families. Commuting access leans on Highway 401 and GO Transit on the Lakeshore East line, with the Guildwood and Rouge Hill GO stations within the broader corridor. The waterfront framing, Port Union and Guildwood, supports owner-occupier resale demand, while the rental pool is reinforced by post-secondary students, hospital staff in east Scarborough, and Durham commuters priced out of central Toronto. The 4-level backsplit format is common stock here, which keeps comparable resale liquid.
Execution favors 75% down or all-cash; estimated monthly cash flow at 75% down is +$26.79 and at 100% cash is +$1,324.75, while leveraged scenarios at 20% to 50% down run materially negative on a single-tenant assumption. Recommended hold is 36 to 60 months: stabilize the in-law suite under a compliant two-unit registration, refinance once stabilized rents are documented, and exit either through resale to a multi-generational buyer or continued hold for Scarborough waterfront appreciation.
Key features
- 4-level backsplit detached, multi-generational layout
- Lower in-law suite with separate entrance and second kitchen
- Three flexible configurations: 2+1, 3+bachelor, or single-family
- Two full kitchens, two 3-pc baths and one 2-pc
- Professionally renovated basement, remodelled 2026 per listing
- Central Air updated 2024, 125-amp electrical service
- Walk-out from family room to backyard
- Vacant with quick closing available
Original MLS description
Client RemarksGreat Price, Great Location. Modern multi-generational home with updated features and flexible layouts. Discover comfort and unrivaled versatility in this expansive 4-level backsplit. Whether you are looking for a single-family property, or space to accommodate a multi-generational or an investment property, this home delivers with a renovated interior and mechanical updates. Layout and flexibility: Three Easy configurations. Choose between the current 2-bdrm, Upgraded kitchen w/ SS Appliances, 3 pc bath and Family Rm, with a lower in-law suite including 1 bdrm, kitchen and a separate entrance. Or Option #2 is a 3 bedroom, kitchen and a Family Room with a lower bachelor suite, kitchen and separate entrance. Last but not least, revert back to the traditional single family home, 3 bdrms, 3 bthrms, 2 kitchens and extensive family space. Features: 2 separate entrances, two full kitchens, Two 3 pc bath and one 2 pc. Large eat-in kitchen, walk-out from family rm to kid-friendly backyard. The Family Rm can easily be configured with the Upper Unit, or the Lower Unit or as a shared communal space. Upgrades: Professionally renovated basement level, remodelled 2026, Central Air 2024, 125-amp electrical service, Epoxy Floor in Main kitchen. Nature: Steps from Pt Union and Guildwood waterfronts and scenic walking trails. Education: Close to U of T Scarborough and Centennial College. Commuting: Proximity to 401, Local and GO Transit. Bonus: Vacant and quick closing dates allowing flexibility for the buyer. (42892031)
Section · Neighborhood
Where it sits.
West Hill
West Hill is in southeast Scarborough, anchored between the Lake Ontario shoreline at Port Union and Guildwood and the U of T Scarborough and Centennial College academic corridor to the north. The listing flags steps to the Port Union and Guildwood waterfronts and scenic walking trails, which supports end-user demand. Commuting is handled by Highway 401 and the Lakeshore East GO line, drawing tenant demand from Durham commuters, post-secondary students, and east-end healthcare workers. The 4-level backsplit housing stock is consistent with the surrounding streets, supporting comparable resale.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: cash flow swings from -$2,828.71/mo at 20% down to +$1,324.75/mo at 100% cash; only 75% down or higher achieves positive carry on current rent assumption.
Estimated cap rate of 1.79% is below GTA cash-flow thresholds; thesis depends on legalizing the secondary suite to lift NOI.
Secondary suite legalization in Toronto requires compliance with zoning, fire, and building code; costs and timeline can vary.
Rent estimate of $2,800/mo is sourced from widened comparables, not direct submarket comps; actual achievable rent may differ.
Listing references a basement remodelled 2026, which is a forward date; buyer should verify completion status and permits.
No recent sold comparables provided, limiting precision on resale ARV underwriting.