Blake-Jones detached with 3 legal units including new laneway studio, list $1,499,000
Modern Toronto detached configured as three legal units, including a newly built, city-approved laneway studio above a ground-level garage. Estimated cap rate 0.83% with negative carry under all leveraged scenarios, reaching positive monthly cash flow only on an all-cash purchase.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,499,000
Cap rate
+0.83%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$345K
6mo hold
Annualized ROI
+46%
preliminary
The Deal
Modern Toronto detached configured as three legal units, including a newly built, city-approved laneway studio above a ground-level garage.
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 | $524,650 |
| Mortgage principal | $974,350 |
| Land transfer tax | $22,485 |
| Closing costs | $22,485 |
| Total acquisition | $569,620 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$2,309 |
| Mortgage payment | -$5,690 |
| Net cash flow | -$4,650/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $1,249/mo |
| Insurance | $625/mo |
| Property management | $268/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (24 comps).
Breakeven
This property turns cash-flow positive at 88.1% 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 ($22,485), and closing costs ($22,485).
Section · Investment Thesis
Why this property.
This Blake-Jones detached is listed at $1,499,000 and is configured as three legal units: a 3-bedroom main and second floor, a legal 1-bedroom basement apartment with separate entrance, and a newly built city-approved laneway studio above a ground-level garage. Estimated gross annual rent is $40,200 against monthly operating expenses of $2,309.25, producing an estimated annual NOI of $12,489, an estimated cap rate of 0.83%, and an estimated gross yield of 2.68%. The basement is currently rented at $1,500 plus $35 internet plus 25% utilities, and the laneway studio is rented at $1,200 plus $35 internet, leaving the main 3-bedroom unit available for an owner-occupant or additional rental income.
Leverage sensitivity is high. At 20% down ($299,800), the estimated monthly mortgage is $7,003.42 and projected monthly cash flow is -$5,962.67, a cash-on-cash return of -20.75%. At 35% down ($524,650), estimated monthly cash flow is -$4,649.53 (-9.80% cash-on-cash). At 50% down ($749,500), estimated monthly cash flow improves to -$3,336.39 (-5.04% cash-on-cash). At 75% down ($1,124,250), estimated monthly cash flow is -$1,147.82 (-1.18% cash-on-cash). Only at 100% cash ($1,499,000) does the property reach positive monthly cash flow at an estimated +$1,040.75 per month and a 0.81% cash-on-cash return. The minimum recommended down payment for neutral or positive carry is therefore 100%.
The investment case here is not current yield. It is a multi-unit, owner-occupier-friendly footprint in a high-demand east Toronto pocket, with an unusual laneway-suite component that is rarely permitted and rarely delivered. An owner who occupies the main unit and continues renting the basement and laneway shifts the carry math materially because personal housing cost replaces a portion of the negative cash flow. Pure investors should expect a long hold and recognize that returns will depend on Toronto land value and rent growth rather than in-place income.
Recommended hold is 60+ months. This property suits a well-capitalized buyer comfortable with negative carry under any standard mortgage scenario, or an owner-occupant treating the legal basement and laneway income as a housing-cost offset.
Key features
- 3 legal units in a detached configuration
- Newly built, city-approved laneway studio above a ground-level garage
- Legal basement apartment with separate entrance and private laundry
- Main unit: 3 bedrooms, hardwood, Bosch appliances, LG washer/dryer
- Basement currently rented at $1,500 plus $35 internet plus 25% utilities
- Laneway studio currently rented at $1,200 plus $35 internet
- Owner-occupant friendly: live in main, rent the other two units
- East Toronto location near Danforth and Line 2 subway
Original MLS description
STUNING! MODERN HOME WITH 3 Legal Units, Located in high demand neighborhood. Main and second floor features premium hardwood flooring and spacious open concept living/dining area. The main unit offers 3 bedrooms, a contemporary kitchen with Bosch appliances, LG washer and dryer. Fully finished basement, legal basement apartment includes separate entrance, 1 Bedroom, kitchen and private Laundry w/ Samsung washer/dryer. BONUS: NEWLY BUILT AND CITY APPROVED LANEWAY STUDIO APARTMENT WITH GROUND LEVEL GARAGE AND SEPARATE APARTMENT ABOVE; AN EXCEPTIONAL FEATURE RARELY AVAILABLE. All units have separate Kitchen and appliances. Live in one unit and rent the other two. Studio apartment is currently rented 1200$ + $35 internet. Basement is rented for 1500$ + 35$ internet + 25% utilities. (42899077)
All photos
29 additional · click any to expand
Section · Neighborhood
Where it sits.
Blake-Jones
Blake-Jones sits in Toronto's east end between Greenwood and Donlands, walkable to Danforth Avenue's restaurant strip and within roughly 10 to 15 minutes of Donlands and Greenwood subway stations on Line 2. The pocket has seen steady demand from end users priced out of Riverdale and Leslieville, supporting rental absorption for legal secondary suites and laneway housing.
City-approved laneway suites remain a small share of Toronto's housing stock, and properties that already deliver a built, permitted laneway unit avoid the multi-year design, permitting, and construction risk that buyers face when starting from raw land.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative estimated monthly cash flow at 20%, 35%, 50%, and 75% down scenarios
Property reaches positive carry only on an all-cash purchase, with estimated +$1,040.75 monthly cash flow and 0.81% cash-on-cash return
High leverage sensitivity: monthly cash flow swings from -$5,962.67 at 20% down to +$1,040.75 at 100% cash
Estimated cap rate of 0.83% is well below typical GTA multiplex benchmarks
Reported sqft of 65 in source data appears to be a data error and should be verified
Annual and monthly property tax shown as $0 in the financial inputs; buyers should verify actual municipal tax with listing brokerage
Main unit vacancy assumption embedded in $3,350 estimated monthly rent; achieved rent depends on leasing the main floor unit
Rent estimate is sourced from widened comparables (24 comps), not in-place leases for all units