Danforth corner-lot detached with separate-entrance suite potential at $880,000
Updated 2-storey detached on a corner lot in Danforth Village-East York with a separate entrance positioned for a nanny suite or secondary income unit. The thesis is a multi-year NOI lift through suite conversion, with current rent comparables supporting an estimated 1.82% cap rate at the $880,000 list price.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$880,000
Cap rate
+1.82%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$200K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.82% 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
$199,500 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 | $308,000 |
| Mortgage principal | $572,000 |
| Land transfer tax | $13,200 |
| Closing costs | $13,200 |
| Total acquisition | $334,400 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,464 |
| Mortgage payment | -$3,341 |
| Net cash flow | -$2,005/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $733/mo |
| Insurance | $367/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 74.0% 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 ($13,200), and closing costs ($13,200).
Section · Investment Thesis
Why this property.
This listing suits a value-add investor with the patience and capital to convert the existing separate-entrance layout into a legal income unit. At an $880,000 list price and an estimated 1.82% cap rate on current single-family rent assumptions, the property does not pencil as a pure cash-flow hold. The path forward is the "separate entrance opens to a nanny suite or income potential" language in the listing, which points to an executable secondary-suite conversion that lifts net operating income over a 24 to 60 month hold.
Danforth Village-East York sits on the TTC Line 2 (Bloor-Danforth) corridor with Pape, Donlands, and Greenwood stations anchoring east-end commuter demand. The submarket has absorbed steady detached-home demand from Riverdale and Leslieville buyers priced out further west, and the Ontario Line will add a new Pape interchange station that intersects Line 2, materially shortening downtown commute times for this catchment. Corner-lot detached homes with separate side entrances are the preferred typology for legal two-unit conversions under City of Toronto multiplex rules, which now permit up to four units as-of-right on residential lots citywide.
Execution requires meaningful equity. At 75% down the property reaches an estimated $51.18 monthly cash flow before any conversion, and an all-cash purchase produces an estimated $1,336.00 monthly. The recommended path is 50% to 75% down, complete the legal secondary-suite conversion within 12 to 18 months, then refinance against the stabilized two-unit NOI. Hold through Ontario Line construction and delivery for the appreciation overlay.
Key features
- Detached 2-storey on a corner lot
- Separate entrance suitable for a nanny suite or secondary unit
- New kitchen and new bathroom per listing
- Hardwood floors and high ceilings
- Oversized primary bedroom overlooking rear yard
- Private deck, mature garden, carport
Original MLS description
A HOME THAT LIVES BEAUTIFULLY ON ITS CORNER: This 2-storey Danforth home blends quiet charm with thoughtful updates-featuring a new kitchen and new bathroom, high ceilings, and light that moves easily through every room. The oversized primary bedroom, which overlooks the backyard, offers space to exhale, while hardwood floors ground the home in warmth. The separate entrance opens to a nanny suite or income potential. Outside, a mature garden softens the edges of city life, with a private deck made for slow mornings and late summer evenings. A carport adds practical advantages. Refined. Rooted. Effortlessly urban. (42912670)
All photos
42 additional · click any to expand
Section · Neighborhood
Where it sits.
Danforth Village-East York
Danforth Village-East York is an established east-end Toronto neighborhood served by TTC Line 2 (Bloor-Danforth) via Pape, Donlands, and Greenwood stations. The area has seen sustained demand spillover from Riverdale and Leslieville, with detached housing stock that supports secondary-suite conversions under the City of Toronto's multiplex zoning framework.
The Ontario Line, currently under construction by Metrolinx, will add a new Pape interchange station connecting to Line 2 and reducing downtown travel times across the east end. This is a multi-year delivery, with the catalyst priced in progressively as construction milestones are hit.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated monthly cash flow ranges from -$2,775.41 at 20% down to +$1,336.00 all-cash. Only the 75% down and 100% cash scenarios produce neutral or positive carry.
Estimated cap rate of 1.82% is below typical GTA underwriting thresholds for cash-flow holds; thesis depends on executing a legal secondary-suite conversion.
Secondary-suite conversion requires permits, building code compliance, and capital outlay not modeled in the financials.
Rent estimate sourced from widened comparables, which carries higher variance than tight local comps.
Reported sqft of 102 appears to be a data error; investor should verify floor area independently before underwriting.
Ontario Line delivery timeline is multi-year; appreciation catalyst is not immediate.