Brick bungalow in West Hill with 3+3 layout, separate-entrance basement, and second kitchen
Detached Scarborough bungalow listed at $799,900 with a fully finished, separate-entrance basement, second kitchen, and 3+3 bedroom configuration. The income-conversion footprint is in place; underwriting at 4.2% gross yield and a 2.15% cap rate reflects rent comparables, not a stabilized two-unit operation.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$799,900
Cap rate
+2.15%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$181K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
2.15% 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
$180,877 estimated over a 6-month hold using default market reno costs and the underwritten rent source.
Recommended leverage
75% 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 | +$2,800 |
| Operating expenses | -$1,364 |
| Mortgage payment | -$3,036 |
| Net cash flow | -$1,600/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $667/mo |
| Insurance | $333/mo |
| Property management | $224/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=63).
Breakeven
This property turns cash-flow positive at 69.3% 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.
This listing suits a value-add investor targeting a legalized two-unit operation in Scarborough's West Hill. The hardware is already there: 3+3 bedrooms, a finished basement with a separate entrance, and a second kitchen. The screening underwrite uses a single rent of $2,800 and lands at a 2.15% cap rate with negative carry under conventional leverage. The path to returns is converting the lower level into a permitted secondary suite, lifting gross rent, and refinancing once the stabilized NOI supports it. List price is $799,900.
West Hill sits in southeast Scarborough along the Kingston Road corridor, served by the 86 Scarborough and Lawrence East bus routes that feed the Line 3 replacement bus network and, longer term, the Scarborough Subway Extension of Line 2 to Sheppard. The University of Toronto Scarborough campus and Centennial College Morningside campus are within a short drive, supporting a student and staff rental pool that often pays for proximity over polish. The City of Toronto's Multiplex zoning bylaw, passed in 2023, permits up to four units as-of-right on lots like this, which is the regulatory backdrop that makes the basement conversion thesis credible. Highway 401 access at Morningside is minutes away for tenants commuting toward the 401 employment belt.
Plan for 75% down or higher; the estimated monthly cash flow at 75% down is +$268.26 and at 100% cash is +$1,436.12, versus -$2,301.06 at 20% down. The execution window is 24 to 36 months: complete permitting and any compliance work on the lower suite within year one, stabilize both units, then refinance against the higher NOI. Hold thereafter for income, with optional further density under the multiplex framework.
Key features
- 3+3 bedroom configuration across two levels
- Fully finished basement with separate entrance
- Second kitchen in basement (in-law / suite-ready layout)
- Renovated main-level kitchen and bathroom (2025)
- Wood-burning fireplace in lower level
- 2-car garage plus parking for 6
- Solid brick bungalow construction
- Deep, tree-lined backyard
Original MLS description
Spacious, Welcoming, And Designed For Real Family Living, This Solid Brick Bungalow Offers Incredible Flexibility For Multi-Generational Households. With 3+3 Bedrooms And A Fully Finished Basement Featuring A Separate Entrance, There's Room For Everyone To Live Comfortably While Still Enjoying Their Own Space.The Bright, Open-Concept Main Level Is Perfect For Everyday Life And Entertaining, Showcasing A Renovated Kitchen And Bathroom (2025), Hardwood Floors In The Bedrooms, And A Large Combined Living And Dining Area Filled With Natural Light. Downstairs, The Finished Basement Extends Your Living Space With Additional Bedrooms, A Second Kitchen, A Cozy Wood-Burning Fireplace, And Plenty Of Room For Family Gatherings, In-Law Living, Teen or Student Retreat. Step Outside To A Private, Tree-Lined Backyard-Ideal For Kids To Play, Summer BBQs, And Creating Lasting Family Memories. With A 2-Car Garage, Parking For 6, And A Quiet, Established Neighbourhood Close To Schools, Parks, Transit, And Everyday Amenities, This Home Delivers Both Comfort And Convenience. A True Turnkey Opportunity Offering Space, Warmth, And The Perfect Setting For Growing Families And Multi-Generational Living. (42912410)
All photos
49 additional · click any to expand
Section · Neighborhood
Where it sits.
West Hill
West Hill is an established southeast Scarborough neighbourhood bounded loosely by Kingston Road, Lawrence Avenue East, and the Rouge Valley. The area is dominated by postwar bungalows on deep lots, which is why it has become a target submarket for secondary-suite and multiplex conversions under Toronto's 2023 as-of-right multiplex zoning.
Demand drivers include University of Toronto Scarborough and Centennial College Morningside, both within a short drive, plus the Rouge Hill GO station on the Lakeshore East line for downtown commuters. The longer-term Scarborough Subway Extension and ongoing Eglinton East LRT planning sit further west but reinforce the broader east-Scarborough investment narrative.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative monthly carry at 20%, 35%, and 50% down scenarios; thesis requires 75%+ down or cash to achieve neutral-to-positive cash flow.
Rent estimate sourced from widened comparables (rent_source: comparables_widened), which carries lower confidence than tight local comps.
Underwrite assumes a single rent; the value-add thesis depends on legalizing and renting the basement suite separately, which requires permits, fire-code compliance, and lease-up risk.
High leverage sensitivity: cash flow swings approximately $3,737/month between the 20% down and 100% cash scenarios.
No recent sold comparables were available to validate the $799,900 list price against the local market.