Clairlea-Birchmount bungalow on 48 x 135 ft lot, walk to Warden Subway, garden suite potential
All-brick original-owner bungalow on a premium 48 x 135 ft lot in Clairlea-Birchmount, a short walk to Warden Subway with separate-entrance lower level and room for a garden suite. Listed at $889,000 with negative carry under all leveraged scenarios; the thesis is long-hold appreciation and renovation upside, not in-place yield.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$889,000
Cap rate
+0.61%
Est. monthly rent
$1,800
Source: comparables_widened
CF at 100% cash
+$455/mo
+0.6% CoC
Hold period
60+ mo
planned
The Deal
All-brick original-owner bungalow on a premium 48 x 135 ft lot in Clairlea-Birchmount, a short walk to Warden Subway with separate-entrance lower level and room for a garden suite.
Section · Financial Reality
Five ways to buy. The 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 |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (67 comps).
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.
This is a land-and-location play in an established east Toronto family neighbourhood, priced at $889,000 for a 2+1 bedroom, 2 bathroom all-brick bungalow on a 48 x 135 ft lot within walking distance of Warden Subway. Estimated gross annual rent is $21,600 with annual NOI of $5,457, producing an estimated cap rate of 0.61% and gross yield of 2.43%. The in-place income profile is thin; the investment case rests on the oversized lot, separate-entrance lower level with in-law or income potential, and the option to add a garden suite or addition over a multi-year hold.
Leverage sensitivity here is high and the property does not produce positive carry under any financed scenario. At 20% down ($177,800), estimated monthly mortgage is $4,153.46 and estimated monthly cash flow is -$3,698.71 (cash-on-cash -21.71%). At 35% down ($311,150), estimated monthly cash flow is -$2,919.94 (-10.37%). At 50% down ($444,500), estimated monthly cash flow is -$2,141.16 (-5.45%). At 75% down ($666,750), estimated monthly cash flow narrows to -$843.21 (-1.46%). Only an all-cash purchase of $889,000 produces positive estimated monthly cash flow of $454.75, a 0.60% cash-on-cash return. The minimum recommended down payment for non-negative carry is therefore 100%.
Given the carry profile, this property suits an appreciation-focused buyer with a long hold horizon, ideally 60+ months, who values the proximity to Warden Subway and the future development optionality of the lot (garden suite, addition, or eventual rebuild). Renovation upside is real: the listing notes recent updates including new flooring, new furnace, central air, freshly painted kitchen cabinets and a custom tiled main bath, but the property remains a candidate for a more substantial value-add program by an investor or renovator.
Buyers should underwrite this as a capital-preservation and land-banking position rather than a cash-flow asset. Estimated land transfer tax and closing costs are $13,335 each, and the estimated total acquisition cost ranges from $204,470 at 20% down to $915,670 in cash. Investors uncomfortable funding monthly shortfalls through the hold should not pursue financed scenarios.
Key features
- All-brick original-owner bungalow, first time offered in decades
- Premium oversized 48 x 135 ft lot
- Short walk to Warden Subway (Line 2)
- 2+1 bedrooms, 2 bathrooms
- Separate entrance to finished lower level with in-law or income potential
- Attached sunroom and large private backyard
- Room to build a future garage, garden suite or home addition
- Recent updates: new furnace (Jan 2026), central air (2022), new flooring, lifetime warranty interlock shake roof
- Move-in condition with flexible 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 east Toronto residential neighbourhood anchored by Warden Subway on Line 2, providing a direct rapid-transit connection to downtown. The listing emphasizes a short walk to Warden Subway, schools, parks, and shopping, which supports long-term rental demand and end-user resale appeal. The area is characterized by mid-century bungalows on generous lots, several of which have been redeveloped or expanded under Toronto's evolving garden-suite and missing-middle policy framework, giving builder and renovator buyers a path to capture lot value over time.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: property is cash-flow negative under all financed scenarios (20%, 35%, 50%, 75% down)
Estimated cap rate of 0.61% is well below GTA investment benchmarks; thesis depends on appreciation and lot redevelopment, not in-place yield
Only an all-cash purchase produces positive estimated monthly cash flow ($454.75)
Rent estimate of $1,800/month sourced from widened comparables (67 comps), not a signed lease
Garden suite or addition potential is contingent on municipal approvals and construction capital not included in acquisition pricing
Reported sqft figure of 65 appears to be a data error; underwrite based on lot dimensions and bungalow footprint
Annual property tax shown as $0 in source data; buyer should verify actual MPAC assessment and tax bill