Black Creek bungalow with separate-entrance basement suite on a large lot
Detached 3-bed bungalow in Black Creek with a separate-entrance basement, full second kitchen, and 4-piece bath, configured for multi-generational or two-unit use. Listed at $899,000 with an estimated 1.75% cap rate; reaches breakeven only at 75% down or higher.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$899,000
Cap rate
+1.75%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$204K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.75% 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
$203,918 estimated over a 6-month hold using default market reno costs and the underwritten rent source.
Recommended leverage
75% 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 | $314,650 |
| Mortgage principal | $584,350 |
| Land transfer tax | $13,485 |
| Closing costs | $13,485 |
| Total acquisition | $341,620 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,488 |
| Mortgage payment | -$3,413 |
| Net cash flow | -$2,100/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $749/mo |
| Insurance | $375/mo |
| Property management | $224/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=63).
Breakeven
This property turns cash-flow positive at 75.0% 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 ($13,485), and closing costs ($13,485).
Section · Investment Thesis
Why this property.
The fit here is a value-add operator targeting an NOI lift through legalization of the existing lower unit. The bungalow already has the bones of a two-unit configuration, separate entrance, full basement kitchen, 4-piece bath, and a large rec area, which shortens the path from purchase to a legally compliant secondary suite. At $899,000 with an estimated 1.75% cap rate, the asset does not pencil as a passive hold; the thesis depends on converting the lower level into legitimate rental income and re-underwriting at a higher stabilized rent.
Black Creek sits in northwest Toronto near the Jane and Finch corridor, with direct access to Highway 400 and Highway 401 and proximity to York University and the Pioneer Village TTC subway station on Line 1. The submarket has been a focus of City of Toronto and Province of Ontario revitalization planning, and the broader Jane-Finch area is identified for intensification under municipal growth frameworks. Demand drivers include the York University student and faculty base, healthcare and institutional employment around Humber River Hospital, and ongoing infill housing along the Finch West LRT alignment. Pricing per detached lot in this pocket remains below comparable inner-suburb freehold submarkets, which supports a multi-year hold while income is stabilized.
Execution: a buyer should plan around 50% to 75% down. At 50% down the estimated monthly cash flow is -$1,312.86; at 75% down the position is essentially flat at -$0.31 per month before any suite legalization upside. Target hold is 36 to 60 months, using the first 6 to 12 months to permit and legalize the basement unit, then refinance against the stabilized two-unit income. The 100% cash scenario shows an estimated positive monthly cash flow of $1,312.25, which sets the ceiling on unleveraged carry.
Key features
- Detached bungalow on a large lot
- Separate entrance to basement
- Full second kitchen and 4-piece bath in basement
- Parking for 3 cars
- New furnace (2025) and 2-year-old hot water tank
- Suited for multi-generational or two-unit use
- Walking distance to amenities, schools, transit
Original MLS description
A Charming 3 Bedroom, 2 Bathroom Detached Bungalow Meticulously Cared For By Original Owner. With Ample Parking Space for 3 Cars, A Separate Entrance To The Basement With A Full Kitchen, 4-Piece Bath, Cold Storage Room, And A Large Family Room and Rec Area. It's A Home With Ample Opportunity And Space For A Multi-Generational Family Or Second Income. There Is A New Furnace, 2025, And A HWT That Is 2yrs Old. With Spacious Rooms And A Large Lot, This Home Is Conveniently Located Close To All Amenities With Easy Access To Highways, Schools, Shopping, Transit. (42901355)
Section · Neighborhood
Where it sits.
Black Creek
Black Creek is a northwest Toronto neighborhood bordered by Highway 400 and Finch Avenue West, anchored by York University, Pioneer Village subway station on TTC Line 1, and Humber River Hospital. The Jane-Finch corridor has been identified by the City of Toronto for long-term intensification and community revitalization, and the Finch West LRT now under construction will improve east-west transit along the area's southern edge.
Freehold pricing in Black Creek remains below comparable suburban Toronto pockets, which historically attracts value-add operators converting larger postwar bungalows into legal two-unit homes serving the York University rental catchment and the area's working population.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Estimated cap rate of 1.75% is well below GTA freehold benchmarks; income alone does not service debt at typical leverage.
High leverage sensitivity: monthly cash flow swings from -$2,887.93 at 20% down to +$1,312.25 at 100% cash.
Basement suite legalization requires permits, fire separation, egress, and parking compliance with City of Toronto bylaws; budget and timeline are not guaranteed.
Estimated rent of $2,800/month is sourced from widened comparables and may not reflect achievable rent for the specific unit mix.
Black Creek and the Jane-Finch corridor have variable resale liquidity compared with core Toronto freehold submarkets.