Elizabeth Gardens 4+1 detached with in-law suite potential and rare 3rd-storey expansion structure
A 2,266 sqft detached in Burlington's Elizabeth Gardens with a finished basement, separate entrance, and a reinforced 2008/2009 second-floor addition engineered to support a future third-storey expansion. Pricing reflects end-user value rather than rental yield; cash flow is negative under all leveraged scenarios at the estimated $3,700 monthly rent.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,299,999
Cap rate
+1.47%
Est. monthly rent
$3,700
Source: comparables_widened
Est. net spread
+$189K
6mo hold
Annualized ROI
+27%
preliminary
The Deal
A 2,266 sqft detached in Burlington's Elizabeth Gardens with a finished basement, separate entrance, and a reinforced 2008/2009 second-floor addition engineered to support a future third-storey expansion.
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 | $455,000 |
| Mortgage principal | $844,999 |
| Land transfer tax | $19,500 |
| Closing costs | $19,500 |
| Total acquisition | $494,000 |
Monthly cash flow
| Estimated rent | +$3,700 |
| Operating expenses | -$2,106 |
| Mortgage payment | -$4,935 |
| Net cash flow | -$3,341/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $185/mo |
| Maintenance reserve | $1,083/mo |
| Insurance | $542/mo |
| Property management | $296/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (21 comps).
Breakeven
This property turns cash-flow positive at 79.0% 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 ($19,500), and closing costs ($19,500).
Section · Investment Thesis
Why this property.
This Elizabeth Gardens detached is priced at $1,299,999 and underwrites as a long-hold, end-user-style asset rather than a yield play. With estimated monthly rent of $3,700 and monthly operating expenses of $2,106, the property generates an estimated annual NOI of $19,128.02 and an estimated cap rate of 1.47%, well below GTA financing costs at the 4.99% mortgage rate used here.
Leverage sensitivity is high and uniformly negative under debt. At 20% down ($259,999.80), the monthly mortgage payment is $6,073.67 and estimated monthly cash flow is -$4,479.67 (cash-on-cash -17.98%). At 35% down, monthly cash flow improves to -$3,340.86 (-8.12%). At 50% down, it is -$2,202.04 (-3.84%). Even at 75% down, the property still bleeds an estimated -$304.02 per month (-0.36%). Only a 100% cash purchase of $1,299,999 produces positive carry, with estimated monthly cash flow of $1,594.00 and a cash-on-cash return of 1.43%. The minimum scenario for positive carry is therefore 100% cash; 75% down is the practical near-breakeven threshold for investors willing to accept a small monthly shortfall.
The investment case rests on optionality and end-user demand, not rental math. The finished basement has a separate entrance and in-law suite potential, the second-floor addition was constructed with reinforced materials to support a potential future 3rd-storey expansion, and the lot supports a wide driveway fitting 4 cars with an oversized side yard. For a multi-generational owner-occupier or a patient investor running a future expansion or in-law suite strategy, the structural optionality is the differentiator.
Hold-period implications: this is a 60+ month hold. Anyone underwriting on leverage should expect to fund negative carry from outside income for years, so the property fits cash-heavy buyers, end-users with rental offset from the lower level, or investors willing to add a legal secondary suite to lift gross rent before stabilizing.
Key features
- 4+1 bedrooms, 2.5 bathrooms across 2,266 sqft
- Finished basement with separate entrance and in-law suite potential
- Main floor bedroom usable as office, studio, or guest space
- Second-floor addition (2008/2009) built with reinforced materials to support a potential 3rd-storey expansion
- Two separate laundry areas (upper floor and basement)
- Wide driveway fitting 4 cars plus inside garage access
- Oversized private side yard with large entertaining deck
- Walkable to Skyway Recreation Centre, parks, schools, and Lake Ontario
Original MLS description
Welcome To This Spacious And Versatile 2-Storey Family Home In Burlington’s Highly Sought-After Elizabeth Gardens Community — A Family-Oriented Neighbourhood Known For Its Great Schools, Parks, Recreation, And Proximity To Beautiful Lake Ontario! Offering 4+1 Bedrooms And 2.5 Bathrooms, This Home Features A Thoughtfully Designed Layout Perfect For Growing Or Multi-Generational Families. A Convenient Main Floor Bedroom (currently being used as a dance studio) Offers Incredible Flexibility And Can Easily Be Used As A Home Office, Workout Room, Playroom, Guest Space, Or Anything The New Owners Envision. The Open-Concept Kitchen Flows Seamlessly Into The Family Room With Direct Access To A Large Entertaining Deck Overlooking The Very Private Oversized Side Yard — An Ideal Setup For Summer Gatherings And Relaxing Evenings Outdoors. Convenience Is Everywhere With Inside Garage Access, A Wide Driveway That Comfortably Fits 4 Cars, Plus Two Separate Laundry Areas Located On The Upper Floor And In The Basement. The Finished Basement Features A Separate Entrance And Excellent In-Law Suite Potential, Making It Ideal For Extended Family, Guests, Or Additional Living Space. The Second-Floor Builder Addition Was Completed In 2008/2009 And Constructed Using Reinforced Design/Materials To Support A Potential Future 3rd-Storey Expansion Should The Next Owner Wish To Grow The Home Even Further — A Rare And Exciting Opportunity! Located Close To The Brand New Skyway Recreation Centre, Small Schools, Parks, Shopping, And The Lake, This Is The Perfect Place To Call Home. (70597544)
Section · Neighborhood
Where it sits.
Burlington
Elizabeth Gardens is an established south-east Burlington community near Lake Ontario, characterized by mature streets, parks, and proximity to the brand new Skyway Recreation Centre referenced in the listing. The area draws family end-user demand for its schools, lakefront access, and lower-density feel relative to central Burlington.
Demand drivers for investors include Burlington's continued population growth, QEW access for Toronto and Hamilton commuters, and a supply-constrained detached market in south Burlington. Land value and end-user comparables, rather than rental yield, typically anchor pricing in this pocket.
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, ranging from -$4,479.67 to -$304.02
Only the 100% cash scenario produces positive carry, at an estimated 1.43% cash-on-cash return
Estimated cap rate of 1.47% is below the 4.99% mortgage rate used, indicating negative leverage
Property tax field in the supplied financials is $0.00; buyers should verify actual municipal taxes during due diligence
Rent estimate of $3,700 is sourced from widened comparables (21 comps); achievable rent should be re-validated
In-law suite and 3rd-storey expansion are described as potential and would require permits, engineering review, and capital to execute