3+1 bed Danforth townhouse steps to Donlands Station with separate-entrance lower level
A 3+1 bedroom townhouse in Danforth with separate entrances to the lower level and a rare double detached garage, listed at $1,150,000. The income-conversion footprint anchors a value-add thesis; current rent comps do not support positive carry below a 100% cash position.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,150,000
Cap rate
+1.45%
Est. monthly rent
$3,250
Source: comparables_widened
Est. net spread
+$260K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.45% 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
$260,425 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 | $402,500 |
| Mortgage principal | $747,500 |
| Land transfer tax | $17,250 |
| Closing costs | $17,250 |
| Total acquisition | $437,000 |
Monthly cash flow
| Estimated rent | +$3,250 |
| Operating expenses | -$1,860 |
| Mortgage payment | -$4,365 |
| Net cash flow | -$2,975/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $163/mo |
| Maintenance reserve | $958/mo |
| Insurance | $479/mo |
| Property management | $260/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=27).
Breakeven
This property turns cash-flow positive at 79.3% 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 ($17,250), and closing costs ($17,250).
Section · Investment Thesis
Why this property.
Built for a value-add investor with renovation capacity and a multi-year horizon. The lower level already has separate entrances from the interior and the front of the house, plus a bedroom, recreation room, and 3-piece bathroom, which sets up a legal secondary-suite conversion to lift NOI from today's estimated 1.45% cap rate. At a $1,150,000 list price, the asset only reaches positive carry on an all-cash basis at an estimated $1,390 monthly, so capital structure and a post-renovation refinance drive the return.
Donlands Subway Station on TTC Line 2 sits within walking distance, giving direct rapid-transit access to Bloor-Yonge and the downtown core. The Danforth corridor itself, with its concentration of cafes, restaurants, and retail along Danforth Avenue, continues to draw owner-occupier and tenant demand that supports rent growth on legalized secondary units. The Don Valley Parkway is close for vehicular access east and north, and the property sits within walking distance of schools and parks. The double detached garage accessed via laneway on both sides also opens a future laneway-suite optionality under City of Toronto laneway housing permissions.
Underwriting points to a 75% down or all-cash entry. At 75% down, estimated monthly cash flow is roughly negative $289; all-cash turns positive at an estimated $1,390 monthly. Plan a 24 to 36 month hold to complete the lower-level legalization and refinance against the lifted NOI, with continued hold for Line 2 corridor appreciation thereafter.
Key features
- 3+1 bedrooms, 3.5 bathrooms across three levels
- Separate entrances to lower level from interior and front of house
- Lower level includes bedroom, recreation room, 3-piece bath, and laundry
- Rare double detached garage with laneway access on both sides
- Walking distance to Donlands Subway Station on TTC Line 2
- Walk-out from kitchen to patio and garage
- Primary bedroom with walk-in closet and 4-piece ensuite
Original MLS description
Welcome to this warm, well-maintained, and remarkably spacious 3+1 bedroom, 3.5 bathroom home, ideally located just steps from the vibrant Danforth and the subway station. Featuring a rare double detached garage accessed via laneway on both sides, this property offers exceptional convenience and versatility. A must-see opportunity! Offering more space than meets the eye, this property blends comfort, functionality, and incredible potential. The main level features a generous living and dining area, along with a bright breakfast nook and a spacious kitchen with a walk-out to the patio and garage. Upstairs, the second floor boasts a large primary bedroom complete with a walk-in closet and a 4-piece ensuite. Two additional well-sized bedrooms, a versatile den or office space, and a shared 3-piece bathroom provide ample room for families or work-from-home flexibility. With separate entrances from both the interior and the front of the house, the lower level offers excellent potential. It includes an additional bedroom, a large recreation room, a 3-piece bathroom, and a dedicated laundry area. This solid home presents endless possibilities for customization and investment. Unbeatable location, just steps to Donlands Subway Station, and within walking distance to trendy Danforth shops, cafés, and restaurants. Close to schools, parks, the DVP, and just minutes to the beach and downtown. (42893718)
All photos
33 additional · click any to expand
Section · Neighborhood
Where it sits.
Danforth
Danforth (Donlands pocket) is a mature Line 2 subway neighborhood anchored by Donlands Station and the Danforth Avenue retail strip. The area draws steady end-user demand from families and professionals seeking subway-accessible freehold product within 15 minutes of downtown Toronto via TTC.
The Don Valley Parkway provides direct vehicular access north and east, and the Beaches and downtown are reachable in minutes. Laneway access on both sides of the lot, combined with City of Toronto laneway and garden suite policies, adds a credible secondary-unit pathway over the hold period.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: property is cash-flow negative at 20%, 35%, 50%, and 75% down scenarios and only reaches positive carry on an all-cash basis
Estimated cap rate of 1.45% is below typical GTA investor thresholds; thesis depends on executing the secondary-suite legalization
Rent estimate sourced from widened comparables, increasing variance versus a tight local rent comp set
Secondary-suite legalization is subject to City of Toronto permits, inspections, fire code compliance, and timing risk
Laneway suite optionality depends on site-specific zoning review and is not guaranteed
No recent sold comparables provided, increasing valuation uncertainty