Renovated Malvern bungalow with 2-bedroom basement suite near Centennial College and UTSC
Updated 3+2 bungalow in Malvern with a separate-entry basement unit currently tenanted at $2,200, priced at $1,075,000. The income-conversion footprint is the thesis; carry requires heavy down payment given the 1.15% cap rate.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,075,000
Cap rate
+1.15%
Est. monthly rent
$2,725
Source: comparables
Est. net spread
+$243K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.15% 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
$242,987 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 neighborhood 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 | $376,250 |
| Mortgage principal | $698,750 |
| Land transfer tax | $16,125 |
| Closing costs | $16,125 |
| Total acquisition | $408,500 |
Monthly cash flow
| Estimated rent | +$2,725 |
| Operating expenses | -$1,698 |
| Mortgage payment | -$4,081 |
| Net cash flow | -$3,054/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $136/mo |
| Maintenance reserve | $896/mo |
| Insurance | $448/mo |
| Property management | $218/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=6).
Breakeven
This property turns cash-flow positive at 83.6% 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 ($16,125), and closing costs ($16,125).
Section · Investment Thesis
Why this property.
Suited to a value-add investor adding a legalized secondary suite to a freehold bungalow. The mechanic is NOI lift through formalizing the existing 2-bedroom basement (kitchen, separate laundry, upgraded bath) currently producing $2,200 per month, then optimizing main-floor rent on a renovated 3-bedroom layout. At a $1,075,000 list and an estimated 1.15% cap rate, this is not a yield buy at moderate leverage; the investor underwrites it for refinance-ready dual income within 24 to 36 months.
Malvern sits inside Scarborough's northeast institutional belt. The listing cites proximity to Centennial College, UofT Scarborough, and Scarborough Town Centre, three of the largest student and retail demand anchors east of the DVP, plus Highway 401 access for commuter tenants. The TTC bus network feeds Line 3 replacement corridors and the Scarborough Subway Extension build, which terminates at Sheppard East and reshapes Scarborough Centre transfer flows. Centennial's Progress Campus and UTSC together host tens of thousands of students within a short bus ride, supporting the two-unit rental thesis on a 150 ft deep lot that already accommodates extended driveway parking and two sheds.
Execution favors 75% down or all-cash. At 75% down the estimated monthly cash flow is -$542.52; at 100% cash it turns to +$1,027.00 with a 1.11% cash-on-cash return. Lower-leverage scenarios bleed materially: -$3,995.47 monthly at 20% down. Plan a 24 to 36 month value-add window to legalize the basement suite, document rents, and refinance against a higher appraised NOI, then hold long-term against Scarborough Subway Extension delivery.
Key features
- 3+2 bedrooms, 3.5 bathrooms, bungalow layout
- Renovated kitchen with new cupboards, countertop, stainless-steel appliances
- New laminate flooring, doors, windows, A/C return vents
- 150 ft deep fully fenced lot with two sheds and extended driveway
- Basement with 2 bedrooms, kitchen, separate laundry, currently rented at $2,200
- Full external CCTV coverage
- Walking distance to TTC, close to Centennial College, UTSC, Scarborough Town Centre, Highway 401
Original MLS description
Gorgeous, spacious 3+2 bedrooms & 3.5 washrooms bungalow featuring an open concept living/dining area. Renovated kitchen with new cupboards, countertop, and stainless-steel appliances. New laminate flooring with reinforced subfloor, new doors, new windows, and added A/C return vents. Renovated bathrooms with new fixtures, flooring and wall tiles. Fully fenced150 ft deep lot with added walkways to 2 sheds - perfect for storage or workshop. Extended driveway to the backyard shed featuring double doors, extra interlock parking spot, inviting upgraded front porch. Full external CCTV coverage. Large basement with 2 bedrooms, kitchen, and potential for rental income (currently at $2,200). Basement also features laminate, newer windows, washer and dryer, upgraded bathrooms. Convenient location close to Centennial College, UofT Scarborough, Scarborough Town Centre, Cineplex, Highway 401, groceries and restaurants. Within walking distance of TTC, banking, pharmacy, and primary school. Look no further, just move in! (42893827)
All photos
18 additional · click any to expand
Section · Neighborhood
Where it sits.
Malvern
Malvern is a northeast Scarborough neighborhood anchored by institutional and retail demand: Centennial College's Progress Campus, the University of Toronto Scarborough, and Scarborough Town Centre all sit within a short drive or TTC bus ride. Highway 401 access supports commuter tenants moving across the GTA, and the Scarborough Subway Extension currently under construction will reshape transit flows at Scarborough Centre once complete.
The pocket trades as a working-family submarket with a strong student rental sub-segment. Detached freehold inventory with separate-entry basement suites is the dominant landlord product type here, which supports the multi-unit underwriting thesis on this address.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Cap rate of 1.15% means the property does not carry at conventional leverage; positive cash flow only at 100% cash.
High leverage sensitivity: monthly cash flow ranges from -$3,995.47 at 20% down to +$1,027.00 at 100% cash.
Basement rental income of $2,200 is described as 'potential' and current; legalization as a secondary suite has not been confirmed in the listing.
Rent estimate sourced from comparables, not from a signed lease on the main unit; actual achieved rent may vary.
139 sqft listed appears to be a data error in the source listing; verify actual square footage with the seller before underwriting.