Clairlea-Birchmount bungalow on 48 x 135 ft lot, walk to Warden Subway, separate-entrance lower level
All-brick original-owner bungalow on a premium 48 x 135 ft lot in Clairlea-Birchmount, listed at $889,000 with a separate-entrance finished lower level and a backyard sized for a future garden suite. The income-conversion path, not current cap rate, drives the thesis.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$889,000
Cap rate
+0.61%
Est. monthly rent
$1,800
Source: comparables_widened
Est. net spread
+$203K
6mo hold
Annualized ROI
+46%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
0.61% 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
$203,442 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 | $311,150 |
| Mortgage principal | $577,850 |
| Land transfer tax | $13,335 |
| Closing costs | $13,335 |
| Total acquisition | $337,820 |
Monthly cash flow
| Estimated rent | +$1,800 |
| Operating expenses | -$1,345 |
| Mortgage payment | -$3,375 |
| Net cash flow | -$2,920/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $90/mo |
| Maintenance reserve | $741/mo |
| Insurance | $370/mo |
| Property management | $144/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=67).
Breakeven
This property turns cash-flow positive at 91.2% 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.
Target buyer is a value-add investor or end-user investor comfortable activating a second unit. The separate-entrance finished lower level already exists; the conversion math, not the in-place rent, is the thesis. At a $889,000 list and an estimated cap rate of 0.61% on current single-unit rent, no leveraged scenario carries: even 75% down still prints an estimated monthly cash flow of -$843.21. The plan is to add the lower-level suite, then evaluate a garden suite on the oversized lot.
Clairlea-Birchmount sits on Line 2 via Warden station, the closest TTC subway access point for the property per the listing's "short walk to Warden Subway" reference. The submarket has seen steady infill on the Birchmount and Warden corridors as Scarborough's western edge bleeds demand from East York and the Danforth. The 48 x 135 ft lot is materially deeper than the area's typical 25 to 40 ft frontages, which is what unlocks the "future garage, garden suite or home addition" option the listing flags. Toronto's as-of-right garden suite framework applies citywide, making the rear-yard build path a known quantity rather than a rezoning bet.
Recommended entry is 100% cash at an estimated +$454.75 monthly and 0.60% cash-on-cash, treating the acquisition as a capital-preservation hold while the secondary suite is legalized and stabilized. Hold window is 36 to 60 months: legalize the lower unit in year one, evaluate the garden suite build in years two to three, then refinance against the stabilized two- or three-unit NOI. Resale optionality remains on the lot itself given the frontage and Warden corridor location.
Key features
- Premium oversized 48 x 135 ft lot
- All-brick original-owner bungalow, first time offered in decades
- Separate entrance to finished lower level with income/in-law potential
- 2+1 bedrooms, 2 bathrooms
- Short walk to Warden subway station (Line 2)
- Backyard sized for future garage, garden suite or home addition
- Recent updates: new furnace (Jan 2026), central air (2022), new flooring (2026)
- Lifetime warranty interlock shake roof
- Attached sunroom and interlock front and rear hardscaping
- Move-in condition with flexible immediate possession
Original MLS description
Prime Clairlea-Birchmount location just a short walk to Warden Subway, schools, parks, shopping and all amenities! Rare opportunity to own this solid all-brick original owner bungalow situated on a premium oversized 48 x 135 ft shaded lot in a highly sought-after family neighbourhood. First time offered in decades, this well-maintained home offers exceptional potential for first-time buyers, investors, renovators or builders looking to secure a great property in an established Toronto community. Features 2+1 bedrooms, 2 bathrooms, separate entrance to a finished lower level with income/in-law potential, attached sunroom for added enjoyment and a huge private backyard with plenty of room to build a future garage, garden suite or home addition. Beautifully landscaped property with interlock front walkways and interlock rear patio creating outstanding curb appeal and outdoor living space. Numerous recent updates include new click hardwood-look flooring and baseboards throughout the main floor and lower bedroom (2026), new furnace (Jan 2026), central air (2022), freshly painted kitchen cabinets with new hardware, custom tiled main bath and lifetime warranty interlock shake roof. Bright eat-in kitchen with ceramic flooring. This home is in true move-in condition with immediate possession available but flexible. All appliances and built-in shelving included. Outstanding value, location and future upside. Aggressively priced for action - don't miss this opportunity! Interior photos the week of May 19th (42896935)
All photos
5 additional · click any to expand
Section · Neighborhood
Where it sits.
Clairlea-Birchmount
Clairlea-Birchmount is an established Scarborough pocket on the southern flank of Line 2, anchored by Warden subway station. The listing describes the property as "just a short walk to Warden Subway, schools, parks, shopping and all amenities," placing it inside the walkshed for TTC rapid transit into downtown Toronto.
The street grid here is dominated by postwar bungalows on deep lots, which has made the area a steady target for end-user renovators and small-scale builders. Lot depth of 135 ft is the operative feature: it accommodates a garden suite build under Toronto's citywide as-of-right framework while preserving the principal dwelling.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Estimated cap rate of 0.61% is far below the GTA screening floor; only 100% cash reaches positive carry at an estimated +$454.75 per month
High leverage sensitivity: 20% down prints an estimated -$3,698.71 monthly cash flow versus +$454.75 at 100% cash, a swing of roughly $4,150 per month
Value-add thesis depends on legalizing the lower-level secondary suite; permitting, fire separation, and egress costs are not in the screening figures
Garden suite build is optional upside, not committed; construction cost, financing, and timeline carry separate execution risk
Estimated monthly rent of $1,800 is sourced from widened comparables and may not reflect achievable rent for the existing single-unit configuration
No recent sold comparables provided; resale exit pricing is not validated against neighborhood transactions