Forest Hill South 50-ft lot at $2,388,000 with separate-entrance basement and rebuild optionality
A detached 4-bedroom on a 50-foot lot in Forest Hill South listed at $2,388,000, with a separate-entrance basement positioned for income conversion. Current rent comparables do not service the carry at standard leverage; the play is land value plus suite legalization, not yield.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$2,388,000
Cap rate
-0.04%
Est. monthly rent
$3,350
Source: comparables_widened
Est. net spread
+$548K
6mo hold
Annualized ROI
+46%
preliminary
Section · Why this passed our floor
What lifts the math here
Current cap
-0.04% 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
$548,260 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 | $835,800 |
| Mortgage principal | $1,552,200 |
| Land transfer tax | $35,820 |
| Closing costs | $35,820 |
| Total acquisition | $907,440 |
Monthly cash flow
| Estimated rent | +$3,350 |
| Operating expenses | -$3,421 |
| Mortgage payment | -$9,065 |
| Net cash flow | -$9,135/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $168/mo |
| Maintenance reserve | $1,990/mo |
| Insurance | $995/mo |
| Property management | $268/mo |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=24).
Breakeven
Negative carry at every scenario. Rent does not cover operating expenses; mortgage adds further drag.
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 ($35,820), and closing costs ($35,820).
Section · Investment Thesis
Why this property.
This is a value-add acquisition for a well-capitalized investor or end-user-investor hybrid who can absorb negative carry while executing on a basement-suite legalization and longer-horizon rebuild option. The mechanic is not yield; the estimated cap rate of -0.04% and gross yield of 1.68% confirm that rental cash flow cannot anchor the underwriting at the $2,388,000 list. The path forward is NOI lift from the separate-entrance lower level, supported by the underlying Forest Hill South land value.
Forest Hill South sits along the Spadina Road corridor, walkable to Forest Hill Village retail and within the catchment proximity of Upper Canada College and Bishop Strachan School, two of the city's most established private schools. The submarket is characterized by active teardown and custom rebuild activity on 50-foot lots, which sets the long-duration land thesis. St. Clair West and the Forest Hill TTC stop on Line 1 sit within a short drive, and the broader Spadina corridor connects directly into the midtown employment base. Pricing in this pocket is anchored by lot value and rebuild economics rather than by rental math, which is why the carry math looks the way it does.
Execution requires 100% cash or near-cash to approach breakeven; estimated monthly cash flow at 100% cash is -$70.50, while 75% down still carries -$3,557.03 monthly. Recommended structure is 100% cash with a 60+ month hold, legalize the basement suite to lift NOI, and preserve the rebuild option as the exit. Refinance once a legal second unit is documented and submarket comps support a higher appraisal.
Key features
- 50-foot lot in Forest Hill South
- 4 bedrooms on the second floor
- Separate entrance to basement with rental conversion potential
- Newly finished basement with high ceilings
- New interlocking driveway with 3-car parking
- Walking distance to UCC and BSS
- Surrounded by luxury custom homes and active redevelopment
Original MLS description
Located in one of Toronto's most established and prestigious neighbourhoods. 603 Spadina Rd sits on a premium 50 ft lot, surrounded by luxury custom homes and ongoing redevelopment. Whether your vision is to restore and personalize a character home, or to take advantage of the lot and pursue a new build, this address presents flexibility that is increasingly hard to find in Forest Hill.The home offers a functional layout with generous room sizes and solid structure, with a separate entrance to a potential rental income basement ($$$).This beautifully updated home features a brand new interlocking widened driveway with parking for up to 3 cars, a newly finished basement with high ceilings, and new flooring throughout all levels. The spacious second floor offers 4 generously sized bedrooms, making it perfect for families.Walking distance to top-tier private schools(UCC,BSS) parks, transit, and the amenities of Forest Hill Village, this is a strategic acquisition for buyers looking beyond turnkey properties and focusing on location-driven upside. (42917838)
All photos
28 additional · click any to expand
Section · Neighborhood
Where it sits.
Forest Hill South
Forest Hill South is one of Toronto's established high-net-worth residential pockets, defined by 50-foot-plus lots, custom rebuilds, and proximity to Forest Hill Village. The corridor is walkable to Upper Canada College and Bishop Strachan School, and connects via Spadina Road to the St. Clair West and Forest Hill stations on the Line 1 subway.
The submarket trades on land value and rebuild economics. Active teardown activity on comparable lots sets the floor, and rental yields are structurally low because pricing reflects end-user demand rather than investor cap rates.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Negative cap rate (-0.04%) and 1.68% gross yield mean rental income does not service the asset at any leverage point
High leverage sensitivity: monthly carry ranges from -$11,227 at 20% down to -$71 at 100% cash
Even at 100% cash the property runs at slight negative monthly cash flow (-$70.50)
Rent estimate sourced from widened comparables, not on-market direct comps
Thesis depends on land value and suite legalization rather than current income; execution risk on permits and zoning
No recent sold comparables provided to anchor ARV or land value