Madoc semi with unfinished basement primed for legal secondary suite conversion
A 3-bed, 3-bath semi-detached in Brampton's Madoc neighbourhood listed at $834,999, with an unfinished basement flagged for a future legal secondary suite. The income-conversion path is the thesis; current cap rate is an estimated 2.13% before the suite is added.
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
Section · Why this passed our floor
What lifts the math here
Current cap
2.13% 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
$187,187 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 | $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 |
Calculated at 4.99% mortgage over 25 years. Rent estimated from comparable rentals (n=68).
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.
Target investor is a value-add buyer willing to underwrite a basement legalization to lift NOI. At list price $834,999 the property runs at an estimated 2.13% cap rate as a single unit, with the unfinished basement described as future potential for a legal secondary suite subject to city approvals. The strategy is to acquire, complete the suite buildout under Brampton's two-unit registration rules, and re-underwrite once a second rent stream comes online. Major mechanicals are recent, reducing capex drag during the conversion window.
Madoc sits in northwest Brampton with approximately 2 minutes' drive to Highway 410, feeding the Highway 407 ETR corridor and onward to the Pearson employment cluster. The listing references Peel's specialized school pathways, including IBT, SciTech, Regional Arts and AP programs, which anchor family tenant demand for upper-unit rentals. Brampton has been one of the more active GTA municipalities for second-unit registrations, and the 410/407 interchange continues to attract logistics employers along Steeles and Queen Street. Walk-out to deck and a private backyard with no neighbours behind support a separate-entrance basement design, which is the prerequisite for the legal suite path.
Recommended entry is the 50% down scenario where monthly carry sits at an estimated -$959.41 as a single unit, narrowing materially once the legalized basement rent is added. The 75% down scenario already prints an estimated +$259.70 monthly even before the second suite. Underwrite a 24 to 36 month execution: close, permit and build the basement suite, stabilize both rents, then refinance into a long-term hold or recycle equity into the next acquisition.
Key features
- 3 bed, 3 bath semi-detached in Madoc
- Unfinished basement flagged for future legal secondary suite (subject to city approvals)
- New furnace January 2025, new A/C 2022
- New hardwood (2021), updated kitchen with new quartz countertop (2023)
- Freshly painted throughout 2024
- Walk-out to deck, private backyard with no neighbours behind
- Approximately 2 minutes' drive to Highway 410
- Within reach of Peel specialized school pathways (IBT, SciTech, Regional Arts, AP)
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 a northwest Brampton pocket close to Highway 410 (approximately 2 minutes' drive per the listing), with onward connectivity to the 407 ETR and Pearson-area employment. The catchment overlaps with Peel District School Board specialized programs (IBT, SciTech, Regional Arts, AP), which sustains family-tenant demand for upper-floor rentals.
Brampton's two-unit registration framework supports the legal secondary suite path, and the home's walk-out and private backyard with no neighbours behind facilitate the separate-entrance configuration that legalization typically requires.
Section · Risk
What could go wrong.
Honest framing of unknowns, assumptions, and downside scenarios.
Single-unit cash flow is negative at every leveraged scenario from 20% through 50% down; only 75% down and all-cash print positive monthly figures.
High leverage sensitivity: monthly carry swings from an estimated -$2,422.35 at 20% down to +$1,478.82 at 100% cash.
Basement suite is described as future potential and is subject to city approvals; permitting timeline, cost overruns, and zoning compliance are not guaranteed.
Estimated rent of $2,899.50 is sourced from widened comparables, not direct same-block comps; achieved rent may vary.
Highway 410 proximity supports access but can introduce traffic noise depending on micro-location.
Listing describes the home as semi-detached in the body but is categorized as detached in the property record; verify designation on title.