Renovated Birchcliffe bungalow with tenanted lower suite and separate side entrance
Two-bedroom detached bungalow in Birchcliffe-Cliffside with a separate-entrance lower suite already tenanted at $1,800 per month. Listed at $799,900 with a value-add path through legalizing and repositioning the secondary unit.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$799,900
Cap rate
+0.85%
Est. monthly rent
$1,800
Source: comparables_widened
Est. net spread
+$183K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
0.85% 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
$182,727 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 | $279,965 |
| Mortgage principal | $519,935 |
| Land transfer tax | $11,999 |
| Closing costs | $11,999 |
| Total acquisition | $303,962 |
Monthly cash flow
| Estimated rent | +$1,800 |
| Operating expenses | -$1,234 |
| Mortgage payment | -$3,036 |
| Net cash flow | -$2,470/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $90/mo |
| Maintenance reserve | $667/mo |
| Insurance | $333/mo |
| Property management | $144/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=67).
Breakeven
This property turns cash-flow positive at 87.9% 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 ($11,999), and closing costs ($11,999).
Section · Investment Thesis
Why this property.
Target buyer is a value-add investor or end-user-plus-income owner who wants a turnkey main floor with a functioning secondary suite to legalize and reposition. The mechanic is NOI lift: the lower level already has a separate side entrance and walk-out, and is currently generating $1,800 per month from a tenant willing to stay. At a list price of $799,900 and an estimated cap rate of 0.85%, the in-place income does not carry the deal on leverage; the thesis is conversion of the existing suite into a fully compliant second unit and a future rent reset on the main floor.
Birchcliffe-Cliffside sits along the Kingston Road corridor in Scarborough's southwest, with TTC bus routes feeding Victoria Park and Main Street stations on Line 2. The listing cites proximity to TTC, subway, The Beach, and the retail strips along Danforth, Kingston Rd and Queen St, which anchor the area's demand profile for family tenants and end users. The neighbourhood has seen steady infill of renovated bungalows on deep lots similar to this one, and the City of Toronto's as-of-right permissions for multiplex conversions on residential lots support a two-unit legalization path. School catchment and the family-friendly street grid south of Kingston Road continue to draw owner-occupant demand, which underwrites resale exit pricing.
Cash flow only turns positive at the 100% cash scenario, with estimated monthly cash flow of $566.12 and a 0.82% cash-on-cash return. At 75% down the carry is roughly $601.74 negative per month. The recommended structure is 75% down or all-cash for investors who can support it, paired with a 24 to 48 month hold to legalize the suite, reset both rents to market, and refinance into a stabilized debt position or exit to an end user.
Key features
- Renovated main floor with open-concept layout and stone-counter kitchen
- Two bedrooms on main level with closets
- Lower-level suite with separate side entrance and walk-out
- Basement tenanted at $1,800 per month, tenant willing to stay
- Vacant possession also available
- Large private fenced backyard
- Private driveway
- Walking distance to TTC, Kingston Rd, and Queen St amenities
Original MLS description
Beautifully Renovated Bungalow Situated On A Large Lot With Private Driveway! This Charming Home Features A Bright Open-Concept Main Floor With Front Hall Closet, Stylish Renovated Kitchen Complete With Stone Countertops & Centre Island, Two Spacious Bedrooms With Closets.The Bright & Spacious Lower-Level Suite Offers A Separate Side Entrance And Walk-Out, Plus Access To A Large Laundry Area With Ample Storage. Basement Is Currently Tenanted And Generating $1,800 Per Month, With Tenant Willing To Stay - An Excellent Income Opportunity For Investors Or End Users. Vacant Possession Is Also Available. Enjoy A Large Private Fenced Backyard In A Fantastic Family-Friendly Neighbourhood And School District. Conveniently Located Close To Schools, Parks, Shopping, TTC, Subway, The Beach, And The Vibrant Shops & Restaurants Along Danforth, Kingston Rd & Queen St. A Turnkey Home With Excellent Income Potential In A Highly Desirable Location! (42911265)
All photos
24 additional · click any to expand
Section · Neighborhood
Where it sits.
Birchcliffe-Cliffside
Birchcliffe-Cliffside is a south Scarborough neighbourhood bounded by the Lake Ontario bluffs and Kingston Road, characterized by deep lots, postwar bungalows, and a steady pace of renovation activity. TTC bus service along Kingston Road and Victoria Park connects to Line 2 subway stations, and the Kingston Road and Queen Street retail corridors anchor walkable amenity demand.
The area continues to attract end users priced out of The Beach immediately to the west, which supports resale liquidity for renovated detached product. City-wide multiplex zoning reforms enable two- and three-unit conversions as-of-right on lots of this type, making secondary-suite legalization a defensible value-add path.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Estimated cap rate of 0.85% is well below GTA financing costs; property is cash-flow negative at every leveraged scenario.
Leverage sensitivity is high: monthly carry swings from -$3,171.06 at 20% down to +$566.12 only at 100% cash.
Stated rent of $1,800 per month covers only the basement suite; main-floor income is not in place and would require vacant possession plus releasing.
Secondary suite legalization (fire separation, egress, ESA) is assumed but not confirmed in the listing; budget for compliance work.
Listed square footage of 65 appears to be a data error; verify floor area before underwriting.
Existing tenant in place may constrain repositioning timeline under Ontario LTB rules if vacant possession is not elected at closing.