Rexdale-Kipling brick bungalow with basement suite potential and GO transit access
A move-in-ready three-bedroom detached bungalow in North Etobicoke listed at $869,500, with a side-entrance basement that can be converted to a two-bedroom income suite. The single-unit rent thesis is cash-flow negative under leverage; the property is positioned as a value-add and transit-adjacent appreciation play.
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
The Deal
A move-in-ready three-bedroom detached bungalow in North Etobicoke listed at $869,500, with a side-entrance basement that can be converted to a two-bedroom income suite.
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 |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (63 comps).
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.
72 Frost Street is a full-brick three-bedroom bungalow in Rexdale-Kipling listed at $869,500. As a single rental unit at the comparable-driven estimated monthly rent of $2,800, the property produces estimated gross annual rent of $33,600 and estimated annual NOI of $16,189.50, supporting an estimated cap rate of 1.86% and gross yield of 3.86%. These metrics reflect Toronto-detached pricing rather than yield, so the underwriting case rests on the value-add path: the bright, dry basement has a side entrance and is described as able to accommodate a two-bedroom income suite, which is the primary lever to lift effective rent above the current single-unit assumption.
Leverage sensitivity is high. At 20% down ($173,900), the estimated monthly mortgage of $4,062.36 drives estimated monthly cash flow to -$2,713.23 and cash-on-cash to -16.28%. At 35% down, estimated monthly cash flow is -$1,951.54 (-7.09% cash-on-cash). At 50% down, it improves to -$1,189.85 (-3.10%). The property does not approach breakeven on the current rent assumption until roughly 75% down, where estimated monthly cash flow turns slightly positive at +$79.64 and cash-on-cash is 0.14%. An all-cash purchase produces estimated monthly cash flow of +$1,349.12 and 1.81% cash-on-cash. The minimum recommended down payment for neutral or positive carry under the as-is single-unit rent is 75%.
The appreciation thesis has two anchors disclosed in the listing. First, transit: the home offers quick access to the highway and the North Etobicoke GO station, which sits on the Kitchener line and continues to benefit from Metrolinx service expansion across the GTA West corridor. Second, renovation and density: adding the legal basement suite with its own side entrance is the clearest path to materially improving NOI and pushing the asset toward leveraged neutrality. Recent capital work (premium 40-year shingles in 2025, central air in 2021, 100 amp panel and sewer backflow preventer in 2017) reduces near-term capex risk for an investor focused on the conversion rather than envelope repairs.
This is a long-hold story (60+ months) suited to investors with substantial equity, a tolerance for negative carry during a basement-suite conversion, or a cash buyer comfortable with a low single-digit yield in exchange for North Etobicoke land exposure near a GO station. Buyers underwriting at 20% to 50% down should expect to fund monthly shortfalls until a second unit is income-producing.
Key features
- Full-brick three-bedroom detached bungalow
- Partially finished basement with side entrance, suitable for two-bedroom suite conversion
- Detached garage
- Hardwood floors throughout main level
- Quick access to Highway 401/427 and North Etobicoke GO station
- Recent capex completed: 40-year shingles (Aug 2025), garage roof (Aug 2025), central air (2021), 100 amp panel and sewer backflow preventer (2017)
- Rent estimate sourced from 63 widened comparables
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)
Section · Neighborhood
Where it sits.
Rexdale-Kipling
Rexdale-Kipling is a North Etobicoke pocket dominated by post-war detached and bungalow stock on deeper lots, with demand drivers from Humber College, Woodbine Centre, Pearson-area employment, and Highway 401/427 access. The listing specifically cites quick access to the highway and North Etobicoke GO station, anchoring the area to the Kitchener line corridor and broader Metrolinx service growth.
Tenant demand in the immediate area skews to families and shared households, which aligns with a three-bedroom upstairs plus a potential two-bedroom basement suite configuration. The rent estimate of $2,800 is drawn from a widened comparable set of 63 properties, which is appropriate context for a single-unit rental but likely understates the income potential of a legal two-unit conversion.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
No risks flagged by the QA agent.