Black Creek Detached Bungalow With Separate Basement Entrance, Listed at $899,000
Detached 3-bed bungalow in Toronto's Black Creek with a separate basement entrance, full second kitchen, and 4-piece bath, configured for multi-generational use or a secondary income suite. Estimated cap rate is 1.75% at the $899,000 list price, with breakeven monthly carry only achieved near the 75% down scenario.
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
The Deal
Detached 3-bed bungalow in Toronto's Black Creek with a separate basement entrance, full second kitchen, and 4-piece bath, configured for multi-generational use or a secondary income suite.
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 |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (63 comps).
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.
This Black Creek bungalow at 297 Driftwood Avenue is listed at $899,000 and presents a value-add and multi-generational use case rather than a turnkey cash-flow play. The raw listing describes a separate entrance to the basement with a full kitchen, 4-piece bath, cold storage, and a large family/rec area, which is the configuration buyers typically target for secondary suite income or extended family living. A new furnace installed in 2025 and a hot water tank approximately two years old reduce near-term mechanical capex risk. Estimated monthly rent of $2,800 (sourced from 63 widened comparables) produces gross annual rent of $33,600 and estimated annual NOI of $15,747, supporting an estimated cap rate of 1.75% and gross yield of 3.74%.
Leverage sensitivity on this property is high, which is typical for GTA detached product where rent-to-price ratios are compressed. At 20% down ($179,800), estimated monthly cash flow is negative $2,887.93 with a cash-on-cash return of -16.76%, reflecting a $4,200.18 monthly mortgage payment against $2,800 in projected rent. At 35% down, estimated monthly carry improves to negative $2,100.40 (-7.38% cash-on-cash); at 50% down, negative $1,312.86 (-3.31%). The property approaches breakeven only at the 75% down scenario, where estimated monthly cash flow is essentially flat at negative $0.31. A full cash purchase produces estimated monthly cash flow of positive $1,312.25 and a 1.70% cash-on-cash return, which is the underlying unlevered yield.
The minimum recommended down payment for neutral carry is 75%. Investors deploying less capital than that should underwrite the property on appreciation and basement-suite income upside rather than in-place cash flow. The $2,800 rent assumption is a single-tenancy figure; if the basement is legalized and rented as a separate unit, blended rent could shift the underwriting, though no second-suite income is included in these projections and verification of legal secondary suite status is required.
Hold-period implications: this is a 60+ month thesis. The investor case rests on Black Creek's longer-term demand drivers (proximity to York University, the Finch West LRT corridor under construction, and Highway 400/401 access) plus potential rezoning and intensification along Driftwood Avenue. Buyers expecting positive monthly carry from day one with conventional leverage should look elsewhere; this property suits a cash-heavy or end-user/investor hybrid buyer who values the lot, the bungalow footprint, and the basement income optionality.
Key features
- Detached bungalow on a large lot, 3 beds and 2 baths
- Separate entrance to basement with full kitchen, 4-piece bath, and cold storage
- Large basement family room and rec area, suited to secondary suite or multi-generational layout
- New furnace (2025) and hot water tank approximately 2 years old
- Parking for 3 cars
- Close to Highway 400/401, TTC, schools, and shopping
- Original-owner home, described as meticulously cared for
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 sits in northwest Toronto near the Jane/Finch corridor, with access to Highway 400 and Highway 401, multiple TTC bus routes, and the Finch West LRT corridor under construction. The area is anchored by York University and Humber River Hospital, both significant employment and tenant-demand nodes. Driftwood Avenue itself is a residential pocket of post-war bungalows on larger lots, a typology that has historically attracted multi-generational buyers and small-scale investors seeking secondary suite potential.
Longer-term demand drivers include ongoing City of Toronto intensification policy permitting secondary and laneway suites city-wide, and the eventual completion of the Finch West LRT, which will improve east-west transit connectivity across the corridor. Investors should weigh this against the area's softer rent comparables relative to central Toronto submarkets.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated monthly cash flow is negative across the 20%, 35%, 50%, and 75% down scenarios, reaching positive carry only at 100% cash
Estimated cap rate of 1.75% is below typical GTA investor underwriting thresholds, indicating the thesis depends on appreciation or secondary suite income upside, not in-place yield
Rent estimate of $2,800 is drawn from widened comparables (63 comps) and assumes single-tenancy; legal secondary suite status and any second-unit rent must be independently verified
Property tax shown as $0 in supplied financials; buyers must independently verify the actual municipal tax assessment as this will reduce NOI once corrected
Sqft field reports 102, which appears to be a data entry artifact; buyer should verify floor area via MPAC or measurement
Black Creek/Jane-Finch submarket has historically softer rent comparables and longer leasing timelines than central Toronto