Madoc 3-bed semi with basement suite potential and Hwy 410 access in 2 minutes
A well-maintained 3-bedroom, 3-bath semi-detached in Brampton's Madoc neighbourhood with recent mechanical updates and unfinished basement offering future legal secondary suite potential. Estimated cap rate of 2.13% means the property requires substantial equity to reach positive carry under current rates.
Anatoli Chtcherbatov
Analyst · Sutton Group Admiral Realty
List price
$834,999
Cap rate
+2.13%
Est. monthly rent
$2,900
Source: comparables_widened
Est. net spread
+$187K
6mo hold
Annualized ROI
+44%
preliminary
The Deal
A well-maintained 3-bedroom, 3-bath semi-detached in Brampton's Madoc neighbourhood with recent mechanical updates and unfinished basement offering future legal secondary suite potential.
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 | $292,250 |
| Mortgage principal | $542,749 |
| Land transfer tax | $12,525 |
| Closing costs | $12,525 |
| Total acquisition | $317,300 |
Monthly cash flow
| Estimated rent | +$2,900 |
| Operating expenses | -$1,421 |
| Mortgage payment | -$3,170 |
| Net cash flow | -$1,691/mo |
Expense breakdown
| Property tax | $0/mo |
| Vacancy allowance | $145/mo |
| Maintenance reserve | $696/mo |
| Insurance | $348/mo |
| Property management | $232/mo |
Math by deterministic Python calculator. Rate 4.99% over 25 years. Rent source: comparables_widened (68 comps).
Breakeven
This property turns cash-flow positive at 69.7% 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 ($12,525), and closing costs ($12,525).
Section · Investment Thesis
Why this property.
Listed at $834,999, this Madoc semi-detached offers a value-add angle through the unfinished basement, which the listing describes as having potential for a legal secondary suite subject to city approvals. On a single-unit rental basis, estimated gross annual rent is $34,794 against an annual NOI of $17,745.79, producing an estimated cap rate of 2.13% and gross yield of 4.17%. Recent capital items including a new furnace in January 2025, new A/C in 2022, and updated hardwood, kitchen counters, and paint reduce near-term maintenance risk.
Leverage sensitivity is high. At 20% down ($166,999.80), the estimated monthly mortgage is $3,901.17 and projected monthly cash flow is -$2,422.35, with a cash-on-cash return of -15.14%. At 35% down, monthly cash flow improves to -$1,690.88 (-6.39% cash-on-cash), and at 50% down the property still runs at an estimated -$959.41 per month (-2.60% cash-on-cash). The property only approaches positive carry at 75% down, where monthly cash flow turns to an estimated +$259.70 (0.48% cash-on-cash). A full cash purchase produces an estimated +$1,478.82 monthly and a 2.06% cash-on-cash return.
The minimum recommended down payment for neutral or positive carry on a single-unit basis is 75%. Investors targeting positive monthly carry with conventional leverage will need to underwrite the basement secondary suite, where adding a second rental stream could materially shift the cash flow profile, subject to City of Brampton approvals and conversion cost. Hold-period implications are long: at conservative leverage, this is a 60+ month hold where principal paydown and Brampton land appreciation, not monthly yield, drive returns.
Suitability is strongest for cash-heavy buyers, portfolio builders willing to add a legal secondary suite, or end-user investors who plan to occupy or house-hack. Pure cash-flow investors using 20% to 50% leverage should expect negative carry as underwritten.
Key features
- 3 bedrooms, 3 bathrooms, semi-detached
- New furnace installed January 2025
- New A/C installed 2022
- New hardwood flooring 2021
- Updated kitchen with new quartz countertop in 2023
- Full property freshly painted in 2024
- Unfinished basement with potential for legal secondary suite, subject to city approvals
- Walk-out to balcony and walk-out to deck
- Private backyard with no neighbours behind
- Approximately 2 minutes' drive to Hwy 410
Original MLS description
Bright, sunny and well-maintained 3-bedroom, 3-washroom semi-detached home offering lots of natural light and a functional open-concept layout. Features include new hardwood in 2021, lots of pot lights, updated kitchen with new quartz countertop in 2023, recently painted kitchen cabinets, and full property freshly painted in 2024. Major updates include new A/C in 2022 and new furnace in Jan 2025. Spacious primary bedroom with ensuite, plus two good-sized additional bedrooms, walk-out to balcony, walk-out to deck and a private backyard setting with no neighbours behind. Unfinished basement provides excellent future potential to design your own legal secondary suite for extra income, subject to city approvals. Perfect for first-time home buyers, investors, or growing families. Conveniently located close to schools, parks, public transit, highways and daily amenities, with very good access to Hwy 410, approximately 2 minutes' drive from the property. Excellent location for families exploring Peel's specialized school pathways, including IBT, SciTech, Regional Arts and AP programs. (42918301)
Section · Neighborhood
Where it sits.
Madoc
Madoc is an established northwest Brampton neighbourhood anchored by single-family and semi-detached housing, with strong demand from end-user families. The listing notes very good access to Hwy 410, approximately 2 minutes' drive from the property, providing direct connectivity south to Hwy 407 and the GTA core.
The location is positioned for families exploring Peel District School Board specialized pathways including IBT, SciTech, Regional Arts, and AP programs, which supports tenant demand from family households. Proximity to schools, parks, public transit, and daily amenities supports both resale liquidity and rental stability.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
High leverage sensitivity: estimated negative monthly cash flow at 20%, 35%, and 50% down scenarios
Property only reaches positive carry at 75% down or higher on a single-unit basis
Basement secondary suite is unfinished and requires City of Brampton approvals plus conversion capital to realize value-add thesis
Estimated cap rate of 2.13% is below typical investor underwriting thresholds for the GTA
Property tax field shows $0 in the supplied data, which appears incomplete; buyer should verify actual annual property tax during due diligence
Reported sqft of 139 in the data appears to be a data entry artifact and should be verified
No recent sold comparables provided, limiting valuation precision