Renovated 4-level backsplit in Bayview Woods-Steeles with second-suite potential
A renovated 4-level backsplit on a southern lot in Bayview Woods-Steeles, listed at $1,398,800, with a separate entrance, second kitchen, and second laundry already in place. Estimated monthly rent of $3,350 produces negative carry under all leveraged scenarios, with breakeven only achieved on a cash purchase.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,398,800
Cap rate
+1.00%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$316K
6mo hold
Annualized ROI
+45%
preliminary
The Deal
A renovated 4-level backsplit on a southern lot in Bayview Woods-Steeles, listed at $1,398,800, with a separate entrance, second kitchen, and second laundry already in place.
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 | $489,580 |
| Mortgage principal | $909,220 |
| Land transfer tax | $20,982 |
| Closing costs | $20,982 |
| Total acquisition | $531,544 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$2,184 |
| Mortgage payment | -$5,310 |
| Net cash flow | -$4,144/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $1,166/mo |
| Insurance | $583/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 85.7% 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 ($20,982), and closing costs ($20,982).
Section · Investment Thesis
Why this property.
603 Cummer Avenue is a renovated 4-level backsplit in the Bayview Woods-Steeles pocket of North York, listed at $1,398,800. The property has been updated with newer hardwood, a renovated kitchen, a 2020 furnace, 2023 AC, tankless hot water (2020), and newer vinyl windows. Critically for investors, the ground floor already carries a separate entrance, a second kitchen, a renovated 3-piece bath, and a second laundry room, with the listing noting that only minor changes are needed to convert the lower portion into a three-bedroom second unit. Estimated monthly rent in the current single-family configuration is $3,350, supporting an estimated cap rate of 1.0% and estimated annual NOI of $13,992 on a gross annual rent of $40,200.
Leverage sensitivity here is high, and the property does not carry positively under any financed scenario at the rate used (4.99% over 25 years). At 20% down ($279,760), the estimated monthly mortgage is $6,535.28 and estimated monthly cash flow is -$5,369.28, a cash-on-cash return of -20.03%. At 35% down, estimated monthly cash flow improves to -$4,143.91 (-9.36% cash-on-cash). At 50% down, it is -$2,918.55 (-4.72%). At 75% down, the gap narrows to -$876.27 per month (-0.96%). Only a 100% cash purchase ($1,398,800 plus $41,964 in estimated land transfer tax and closing costs) produces positive carry, at an estimated +$1,166 per month and a 0.97% cash-on-cash return.
The minimum recommended down payment for neutral or positive carry under these inputs is 100% cash. Investors using leverage should underwrite this as an appreciation and optionality play rather than a cash-flow asset, with the realistic path to improved economics being conversion of the lower level into a legal second unit, which would increase gross rent and recompress the negative carry across all scenarios. Until that conversion is executed and stabilized, holding period should be planned at 60+ months to allow for renovation, lease-up, and land value accretion in a North York detached submarket.
Buyers should weigh the strength of the location (TTC access, ravine, GO train proximity, A.Y. Jackson S.S. catchment) and the quality of the recent renovations against the reality that, as currently configured and rented, this property requires substantial equity to avoid monthly shortfalls. Sutton Group Admiral Realty can assist with second-suite feasibility, permitting pathways, and refreshed rent comparables once a two-unit configuration is contemplated.
Key features
- 4-level backsplit, renovated kitchens and bathrooms
- 6 bedrooms / 3 bathrooms across all levels
- Separate entrance, second kitchen, and second laundry on ground floor
- Listing notes minor changes needed to convert to a 3-bedroom second unit
- Newer furnace (2020), AC (2023), tankless hot water (2020), vinyl windows
- Double car garage on a prime southern lot
- Steps to TTC, ravine, trails; close to Old Cummer GO
- A.Y. Jackson S.S. / Zion Heights M.S. / Steelesview P.S. catchment
Original MLS description
Renovated and Upgraded 4 Level Backsplit Home on A Prime Southern Lot In Fantastic Bayview-Woods Neighbourhood! It Features: 6 Bedroom & 3 Bathroom, Renovated Kitchens and Bathrooms, Newer Hardwood Floor Throughout Main, Upper & Ground Floor, Crown Moulding, Lots of Natural Light from Large Windows, Double Car Garages, Newer Furnace (2020) & AC (2023), Tankless Hot Water Heater (2020)! Newer Vinyl Windows! Main Door and Living Room Bay window and Railing for Veranda replaced in 2020! Min Level Includes a Welcoming Foyer, Bright and Spacious Living Room Combined with Dining Room, Renovated Gourmet Kitchen with Newer Cabinets & Black Stainless Appliances (2020 & 2024) and Combined with Breakfast Area Includes a Window and a Cozy Bay window! Upper Level Includes Three Family Size Bedrooms and Two Renovated Bathrooms! Ground Floor Includes a Separate Entrance, Family Room (W/O to Yard), 2nd Kitchen, Reno'd 3 Pc Bath, Side Entrance, 2nd Laundry Room, Plus Lower Level Includes 2 Extra Bedroom with Above Grade Windows, and a Sitting Area for Family Entertainment, Generate A Great Potential of Rental Income (Minor Changes Needed to Convert it to a 2nd Unit with Three Bedroom Apartment)! Fabulous Home (6 Bedroom / 3 Bathroom), Prime Lot, Convenient Location: Steps to Ttc, Ravine, Trails, Park and Close to Go Train, Cummer Shopping Centre, Restaurants, Bank & More! *** Great School: A.Y Jackson S.S, Zion Heights M.S, Steelesview P.S *** Must See to Believe the Value ** (42907572)
All photos
48 additional · click any to expand
Section · Neighborhood
Where it sits.
Bayview Woods-Steeles
Bayview Woods-Steeles is an established North York neighborhood bordered by ravine and trail systems, with strong end-user demand anchored by the A.Y. Jackson S.S., Zion Heights M.S., and Steelesview P.S. catchment. The location offers TTC bus access on Cummer, proximity to the Old Cummer GO station, and the Cummer shopping node for daily needs.
The submarket is dominated by mid-century detached homes on generous lots, and demand drivers include school-seeking families, multigenerational buyers, and investors targeting future second-suite or garden-suite intensification as the City of Toronto continues to expand as-of-right multiplex permissions.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: property is cash-flow negative at 20%, 35%, 50%, and 75% down; only the 100% cash scenario produces positive estimated monthly cash flow.
Estimated cap rate of 1.0% is low; returns rely on appreciation and a second-suite conversion that has not yet been executed or permitted.
Reported sqft of 185 in the data feed appears inconsistent with a 4-level backsplit detached home; buyers should verify floor area independently.
Annual property tax shown as $0 in the financial inputs; buyers must confirm actual municipal tax with the listing brokerage and the City of Toronto, as this will materially affect carry.
Second-suite conversion requires permits, fire separation, and zoning compliance; rental upside is not realized until that work is completed and leased.
Rent estimate sourced from widened comparables (24 comps); single-family detached rent in this price band can vary materially by configuration and finish.