4-level backsplit on 56x132 ft lot in Seven Oaks with side entrance for secondary suite conversion
A 4-bedroom, 4-bath detached backsplit in Scarborough's Seven Oaks pocket with a dedicated side entrance positioned for a basement income suite. The play is a multi-year NOI lift through legal secondary-suite conversion, not current-state cash flow.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$1,099,900
Cap rate
+1.68%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$246K
6mo hold
Annualized ROI
+44%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.68% 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
$246,477 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 | $384,965 |
| Mortgage principal | $714,935 |
| Land transfer tax | $16,499 |
| Closing costs | $16,499 |
| Total acquisition | $417,962 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$1,810 |
| Mortgage payment | -$4,175 |
| Net cash flow | -$2,636/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $917/mo |
| Insurance | $458/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 76.0% 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 ($16,499), and closing costs ($16,499).
Section · Investment Thesis
Why this property.
This listing suits a value-add investor or owner-occupier with renovation capital who can execute a legal secondary-suite conversion. The mechanic is NOI lift: the existing dedicated side entrance and full basement reduce conversion friction, and the 4-level backsplit format above 2,000 sq ft above grade supports a main-house plus lower-suite split. At a $1,099,900 list price with an estimated 1.68% cap rate at current-state rent, the thesis only works if a second income stream is added; otherwise the carrying cost dominates.
The submarket sits in the Morningside/Seven Oaks pocket of east Scarborough, anchored by four named demand drivers cited in the listing: the University of Toronto Scarborough campus, Centennial College, the Toronto Pan Am Sports Centre, and Scarborough Health Network's Centenary Hospital. The U of T Scarborough and Centennial College student and staff base supports tenant demand for a secondary suite, and the SHN Centenary Hospital employment base broadens the rental pool beyond students. Highway 401 access and TTC bus connections support commuter tenants oriented toward downtown and the broader 401 corridor. The 56 ft by 132 ft lot is larger than the typical Scarborough infill parcel, which supports long-term land value.
Execution requires significant capital. At 75% down, estimated monthly cash flow is -$66.25, effectively breakeven on current-state rent; only the 100% cash scenario produces positive carry at an estimated $1,539.62 per month. The realistic path is to close with 35% to 50% down, complete the basement suite conversion within 6 to 12 months, then refinance once the second unit is rented and stabilized. Target hold is 36 to 60 months through the conversion and seasoning cycle.
Key features
- 4-level backsplit, over 2,000 sq ft above grade plus full basement
- 56 ft by 132 ft lot
- 4 bedrooms, 4 bathrooms
- Dedicated side entrance suitable for secondary suite or in-law conversion
- Lower-level family room with walk-out sliding door
- Attached double-car garage plus double driveway
- Original hardwood flooring preserved under broadloom
- Minutes to U of T Scarborough, Centennial College, SHN Centenary Hospital, and Highway 401
Original MLS description
Rare income & upsizing opportunity in sought-after Seven Oaks! One of the area's largest, most versatile properties, boasting over 2,000 sq ft above grade plus a high-potential full basement level. Perfect for growing families, multi-generational living, or savvy investors seeking maximum cash flow. Set on a premium, beautifully manicured 56 ft x 132 ft lot, this expansive 4-level backsplit features a highly practical layout flooded with natural light from large windows. The main level offers a spacious foyer, oversized living and dining rooms, and a family-sized kitchen with a breakfast area. Upstairs holds four generous bedrooms, highlighted by an exceptionally large main bathroom with layout potential for a spa-style luxury retreat. The lower level features a massive 24 ft x 13 ft family room with sliding door walk/out. A dedicated side entrance easily supports a secondary income suite or in-law setup with minimal conversion costs. Original hardwood flooring sits preserved under most existing broadloom-offering a seamless, high-ROI modern upgrade. Complete with an attached double-car garage, double driveway, and a charming covered front porch, this package is an absolute rarity for the neighbourhood. Unbeatable location minutes to U of T Scarborough, Centennial College, Pan Am Sports Centre, SHN Centenary Hospital, TTC, and Hwy 401. Don't miss out-schedule your viewing today! (42912583)
Section · Neighborhood
Where it sits.
Morningside
Seven Oaks and the broader Morningside pocket of east Scarborough are anchored by University of Toronto Scarborough, Centennial College, the Toronto Pan Am Sports Centre, and Scarborough Health Network's Centenary Hospital. The institutional base supports a steady secondary-suite rental pool drawn from students, faculty, and hospital staff. Highway 401 access and TTC bus service connect the area to the broader east GTA employment corridor. Lot sizes in this pocket trend larger than central Scarborough infill, which supports long-term land value.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative estimated monthly cash flow at all leveraged scenarios on current-state rent; only the 100% cash scenario shows positive carry at an estimated $1,539.62 per month
High leverage sensitivity: the swing between 20% down and 100% cash is over $5,100 per month in estimated cash flow
Estimated cap rate of 1.68% requires a second income stream (basement suite) to justify the thesis
Secondary-suite conversion is subject to municipal permitting, fire-code separation, and inspection; conversion cost estimates are not provided in the listing
No recent sold comparables available to triangulate current market value or post-conversion ARV
Carrying cost during conversion (estimated 6 to 12 months) is borne fully by the investor