We bought a detached Toronto house for $930,000, put $150,000 into a full triplex conversion, and ended up with three fully leased 2-bedroom units walking distance from the Eglinton Crosstown LRT. Total gross rent is $7,000 a month and net cash flow after all expenses and mortgage is $2,000 a month. Here is the full property walkthrough and every number from the deal.
This is not a projection. These are the actual results including where the numbers came in below what we originally modelled and why we still consider this a solid outcome. If you want to see what a real Toronto multiplex conversion looks like from purchase through refinance, this is it.
Why This Location and Why This Property
The property is near Eglinton and the Allen, walking distance to the Eglinton LRT. When we bought it in the summer of 2025, the LRT still was not open. Honestly it had felt like it was coming forever. We believed in the corridor and liked the fundamentals, but we were not counting on a specific opening date in our numbers.
The LRT opened in February 2026, right as we were finishing renovations and leasing up. We felt it immediately. Tenants were actively choosing based on transit access and it helped us attract a significantly larger pool of applicants. Transit access is a real driver of rental demand and this location delivered on that.
When we bought the property it was an older house with good bones. In its original state it would have been difficult to rent out and nearly impossible to cash flow well. The goal from day one was to convert it into three separate legal units that could each stand on their own. Good bones, strong location, and a clear path to three units. That combination is what made this deal worth pursuing.
The Property: Three 2-Bedroom Units All Leased
The main floor unit benefits from the length of the original house. We were able to carve out a full 2-bedroom unit with a new kitchen, a full bathroom, and a separate entrance. This unit leases at $2,500 a month. The finish level is clean and functional, nothing over the top, designed to attract reliable long-term tenants.
The second floor is also a fully self-contained 2-bedroom unit at the same finish level. Separate entrance, full kitchen, full bathroom. This unit also leases at $2,500 a month. Keeping the finish consistent across all three units makes the property easier to manage and maintain over time.
The legal basement suite is a 2-bedroom unit with a full kitchen and separate entrance. This unit leases at $2,000 a month, reflecting the below-grade position. Three units, all 2-bedrooms, all leased. Total gross rent is $7,000 a month. For a full breakdown of what is involved in a conversion like this, see our guide on how to create a multiplex in Toronto.
The Full Deal Numbers: Purchase Through Refinance
We paid $930,000 for the property and put $150,000 into the renovation. With closing costs and carrying costs during construction, total capital deployed came to approximately $370,000 and total cost all-in was close to $1.08 million. The renovation covered the full triplex conversion including all three kitchens, three bathrooms, separate entrances, and finishing the basement suite to legal standard.
The market has come down from where it was when we bought, so the property is appraising at around $1.1 million. At 80% loan to value that gives us a new mortgage of $880,000. That refinance pulls out roughly $136,000, which essentially gives us our renovation budget back. That is not the home run cash-out we originally projected when we underwrote this deal at higher market values. But that is the reality of where Toronto values are right now, and we would rather show you what actually happened than what we hoped would happen.
The honest version of this deal is that the refinance came in lower than projected because the market softened between purchase and completion. That is a real risk in any value-add project and it is why we always recommend building a buffer into your assumptions when you are running the numbers upfront. Use our total return projections calculator to stress-test your own deals before you commit.
Monthly Cash Flow and Cap Rate: What This Deal Actually Produces
Gross rent is $7,000 a month. Operating expenses including utilities, property tax, and insurance run approximately $1,000 a month. The mortgage on $880,000 at 3.6% variable comes to roughly $4,000 a month. That leaves approximately $2,000 a month in net cash flow after all expenses and debt service. On a $1.1 million property that works out to close to a 6.5% cap rate.
Sometimes things do not work out exactly as planned. The refinance did not hit our original projection and we are carrying more of our own capital in this deal than we initially expected. But a fully leased Toronto triplex near the LRT that cash flows $2,000 a month and returned our renovation budget on the refinance is a solid result by any reasonable measure.
The deal works. It cash flows meaningfully, the units are all leased, and the property is in a corridor with strong long-term fundamentals. That is what matters at the end of the day. Getting your renovation capital back on the refinance is a bonus. Getting $2,000 a month in positive cash flow is the real win.
The Garden Suite Potential We Are Holding for Later
This lot can support a garden suite in the backyard. We are not building it right now and that is intentional. Right now is a good time to be buying deals, so we are deploying our capital toward the next acquisition while this property carries itself on its own cash flow.
The garden suite potential will still be there when the timing is right. Adding a fourth unit later means additional rental income on a lot we already own, without having to buy anything new. That optionality is built into the asset and it represents meaningful upside that is not reflected in the current numbers.
This is how we think about lot optimization at Elevate. You do not have to maximize every unit on day one. Sometimes the right move is to let the property stabilize, let the cash flow build, and add the next unit when your capital is better deployed that way. The current Toronto zoning rules allow up to six units on a single residential lot, so the ceiling on what this property can eventually produce is well above where it sits today.
Start Building Your Toronto Multiplex Portfolio
This deal is a real example of what Toronto multiplex investing looks like in practice, including the parts that did not go exactly as planned. The refinance came in lower than projected, the market softened between purchase and completion, and we are carrying more capital than we originally modelled. And we still ended up with a fully leased property cash flowing $2,000 a month near one of Toronto’s most significant transit corridors. That is the nature of this strategy done properly.
If you want to see what a deal like this looks like with today’s prices and today’s rates applied to your own situation, that is exactly what we help with. Every deal is different and the numbers need to be run specific to the property, the location, and your capital position before you can know whether it works.
Our brokerage specializes in Toronto multiplexes. We’ll help you find deals, crunch the numbers, and guide you through renovations and management. If you want full support in Toronto multiplex investing, our team can help you:- Find high-potential properties
- Crunch the numbers so you know exactly where you stand
- Coach you through renovations to maximize returns
- Lock in great tenants
- Provide full property management so your investment runs smoothly
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
