Renovated Highland Creek detached on 50 x 278 ft lot with garden suite potential
Renovated 4+1 bedroom detached in Highland Creek on a 50 x 278 ft lot, listed at $1,199,999 with stated potential for a garden suite. Estimated cap rate of 1.41% on current rent reads negative until very high equity, so the thesis depends on adding a secondary income unit on the deep lot.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,199,999
Cap rate
+1.41%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$272K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.41% 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
$272,050 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 | $420,000 |
| Mortgage principal | $779,999 |
| Land transfer tax | $18,000 |
| Closing costs | $18,000 |
| Total acquisition | $456,000 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$1,936 |
| Mortgage payment | -$4,555 |
| Net cash flow | -$3,141/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $1,000/mo |
| Insurance | $500/mo |
| Property management | $268/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=24).
Breakeven
This property turns cash-flow positive at 79.8% 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 ($18,000), and closing costs ($18,000).
Section · Investment Thesis
Why this property.
Target buyer is a value-add investor willing to underwrite a garden suite or secondary unit on a 50 x 278 ft lot in Highland Creek. As a single-family rental at $1,199,999 the listing prints an estimated 1.41% cap rate and negative carry at all leveraged scenarios, so the affirmative case is NOI lift from a second dwelling on the rear of the lot, not the in-place rent. Underwriting should size the construction budget against post-completion two-unit rent, not the current $3,350 estimated single-tenant figure.
The submarket trajectory is anchored by the University of Toronto Scarborough campus, which the listing notes is minutes away and which drives steady student and faculty rental demand in Highland Creek. Centennial College Morningside is within the same catchment, and the Highway 401 and Highway 2A interchanges feed the eastern GTA employment corridor. The City of Toronto's garden suite and multiplex bylaws now permit additional residential units on lots of this depth as-of-right in most cases, which is the regulatory backdrop that makes the 278 ft depth economically relevant. Recent capital already spent, a 360 sq. ft. permitted addition, a 200 AMP panel upgrade, and a 2023 survey, reduces front-end diligence cost for a builder underwriting the rear-yard build.
Execution favors investors with construction capacity and equity. At 75% down the estimated monthly cash flow is -$337.52 on the existing rental footprint, and only the 100% cash scenario clears positive at an estimated $1,414.50 per month. Plan a 24 to 48 month hold: stabilize the front house, permit and build a garden suite, then refinance once two-unit rent supports the debt. Investors without construction appetite should pass; the existing-condition numbers do not stand alone.
Key features
- 50 x 278 ft lot with stated garden suite potential
- Renovated 4+1 bedroom, 3-bathroom layout
- 360 sq. ft. permitted addition already completed
- Over $100,000 in stated renovations
- 200 AMP electrical panel upgrade
- Double garage and 4-car driveway, no sidewalk
- 2023 survey available
- Minutes from University of Toronto Scarborough campus
Original MLS description
Welcome to a beautifully renovated 4+1 room, 3-bathroom home in the prestigious Highland Creek community. Set on a rare 50 x 278 ft deep lot, this property offers significant long-term value and flexibility for investors, custom home builders, or end-users. Over $100,000 has been invested in renovations, featuring a modern layout with a kitchen that includes an island, gas stove, and black stainless steel appliances. A 360 sq. ft. addition was completed with a permit, providing additional functional living space to the floor plan, complemented by pot lights throughout the interior and exterior. Technical specifications include an upgraded200 AMP electrical panel and a Lorex security system. A 2023 survey is available for review. The exterior features a double garage and a 4-car driveway with no sidewalk, maximizing the frontage and parking capacity. Given the lot depth, there is potential to explore further renovations, a custom build, or a garden suite. This home is located minutes from the University of Toronto Scarborough campus and is in close proximity to parks, trails, schools, and everyday amenities. (42901817)
Section · Neighborhood
Where it sits.
Highland Creek
Highland Creek sits in east Scarborough adjacent to the University of Toronto Scarborough campus and Centennial College's Morningside campus, both of which underpin tenant demand from students, faculty, and staff. The neighborhood is characterized by deep lots, mature trees, and proximity to the Highland Creek ravine system and Lake Ontario waterfront trails.
Road connectivity runs through Highway 2A and Highway 401, linking the area to downtown Toronto, Pickering, and the broader 401 employment corridor. The City of Toronto's garden suite and multiplex permissions have made deep east-end lots more attractive to small-scale developers and value-add investors looking to add density without severance.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative monthly cash flow at all leveraged scenarios; only the 100% cash scenario clears positive at an estimated $1,414.50 per month
High leverage sensitivity: monthly carry swings from -$4,191.97 at 20% down to -$337.52 at 75% down
Estimated 1.41% cap rate on in-place rent is well below debt cost; thesis depends on building a second unit
Garden suite path requires permitting, construction capital, and timeline risk; the listing language is potential, not approved
Estimated rent of $3,350 is sourced from widened comparables, not in-place lease
Construction cost inflation and contractor availability in the GTA can compress projected returns