Rexdale brick bungalow with side-entrance basement suite potential, steps to GO transit
A move-in-ready three-bedroom brick bungalow in Rexdale-Kipling with a side-entrance basement primed for a two-bedroom income suite. Listed at $869,500 with an estimated 1.86% cap rate at current rent assumptions, the play is NOI lift through suite conversion, not day-one carry.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$869,500
Cap rate
+1.86%
Est. monthly rent
$2,800
Source: comparables_widened
Est. net spread
+$197K
6mo hold
Annualized ROI
+45%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
1.86% 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
$197,059 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 | $304,325 |
| Mortgage principal | $565,175 |
| Land transfer tax | $13,043 |
| Closing costs | $13,043 |
| Total acquisition | $330,410 |
Monthly cash flow
| Estimated rent | +$2,800 |
| Operating expenses | -$1,451 |
| Mortgage payment | -$3,301 |
| Net cash flow | -$1,952/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $140/mo |
| Maintenance reserve | $725/mo |
| Insurance | $362/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 73.4% 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 ($13,043), and closing costs ($13,043).
Section · Investment Thesis
Why this property.
This listing suits a value-add investor with the capital to absorb negative carry while a legal basement suite is added. The mechanic is straightforward: the basement is already partially finished, dry, and has its own side entrance, so the path to a two-bedroom income suite is shorter and cheaper than gut-conversions elsewhere in Etobicoke. At $869,500 with an estimated 1.86% cap rate on current single-unit rent assumptions, the deal only works if a second income stream is added or the buyer brings substantial equity.
Rexdale-Kipling sits in north Etobicoke with quick access to Highway 427 and the Etobicoke North GO station on the Kitchener line, which connects to Union Station and feeds the planned all-day two-way GO expansion. The bungalow stock in this pocket is being steadily upgraded as buyers priced out of central Etobicoke move north of Eglinton, and detached lots with side entrances and parking are the format multi-generational households and basement-suite landlords actively pursue. Proximity to Pearson-area employment, Humber College North, and the William Osler health campus underpins steady tenant demand for legal secondary suites.
At 75% down the estimated monthly cash flow is roughly breakeven at $79.64; at 100% cash it is approximately $1,349.12 per month. The realistic execution path is 35% to 50% down, six to nine months to permit and finish a legal two-bedroom suite, then a refinance once stabilized rents reset the appraisal. Hold 36 to 60 months through the suite-stabilization cycle and benefit from continued GO corridor densification.
Key features
- Full brick three-bedroom bungalow on quiet low-traffic street
- Partially finished basement with separate side entrance suitable for two-bedroom suite
- Hardwood floors throughout upstairs
- Detached garage
- Recent capital upgrades: shingles (2025), furnace heat exchanger (2026), central air (2021), 100A panel and windows
- Quick access to Highway 427 and Etobicoke North GO station
Original MLS description
Bright and beautiful full brick three-bedroom bungalow on a preferred and quiet street. This charming character home offers a warm and welcoming family atmosphere filled with timeless appeal and endless potential for the future. Lovingly maintained over the years, this home blends classic charm with comfortable everyday living creating a space that fills both cozy and full of possibility. This move in ready home is perfect for a young family, downsizers or someone looking to add value and income by putting in a basement apartment. Upstairs offers hardwood floor throughout and a functional layout with open concept living/dining room, spacious three-piece bathroom and three bedrooms. The bright, clean and dry basement is partially finished with a large recreation space, and can easily accommodate a two bedroom income generating suite with its own side entrance. The detached garage offers convenient storage. Ideally located on a low traffic street with quick access to the highway and North Etobicoke Go station. Upgrades done recently for years of trouble free home ownership: Replaced Furnace Heat Exchanger (March 2026), Premium 40 Year Shingles (Aug 2025) with Ice and Water shield + Full underlayment; Garage roof (Aug 2025). Central Air (2021), Water Heater (2017), Upgraded Windows, Upgraded 100 amp electrical panel with breakers (2017), Sewer Backflow preventer (2017) (42917460)
All photos
36 additional · click any to expand
Section · Neighborhood
Where it sits.
Rexdale-Kipling
Rexdale-Kipling is a north Etobicoke pocket bounded by Highway 427, Highway 27, and the Humber River, traditionally an end-user neighborhood of post-war brick bungalows on deep lots. Demand drivers include the Etobicoke North GO station on the Kitchener line, the Pearson Airport employment zone, Humber College North campus, and the William Osler Health System. The quiet residential streets continue to attract multi-generational buyers and landlords pursuing legal basement suites under Toronto's secondary suite framework.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative monthly cash flow at 20%, 35%, and 50% down scenarios; breakeven only reached at 75% down or above
High leverage sensitivity: monthly cash flow swings from -$2,713.23 at 20% down to +$1,349.12 at 100% cash
Cap rate of 1.86% is well below typical GTA freehold investor thresholds without the basement suite conversion executed
Rent estimate derived from widened comparables, not local same-format comps; actual achievable rent may vary
Basement suite conversion requires permits, fire separation, egress compliance, and timeline risk before income stabilizes
No recent sold comparables provided to benchmark purchase price