This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
A lot of people say it’s impossible to cash flow in Toronto. But every so often, a deal comes along that proves the opposite—as long as you buy the right property and have a smart plan.
The Property: Size, Potential, and Why It Works
Our clients recently bought a semi-detached home sitting on a massive 28-by-120-foot lot in Toronto. One of the standout features? A full-sized garage at the back, opening up the potential for a future garden suite. But the immediate plan is to convert the main home into a legal triplex.
These clients considered condos in the past, but the math didn’t add up. The returns were too tight, appreciation wasn’t strong enough, and they wanted more control over the investment.
Switching gears to a Toronto freehold property with triplex potential opened up better cash flow, better long-term value, and a path to scale. This property checked all their boxes.
Toronto Triplex Layout and Renovation Plan
The layout makes it easy. All three floors already have separate entrances, which means lower renovation costs and a simpler path to legal conversion. No underpinning needed. Renovations will focus on cosmetic upgrades—new kitchens, bathrooms, and a smart layout redesign—with an estimated budget of $180,000.
Here’s how the property will be split into a Toronto triplex:
- The upper floor will be a two-bedroom unit
- The main floor will become a one-bedroom
- The basement, which already has a separate entrance, will be another two-bedroom
This setup allows for three independent rental units with minimal overlap or disruption—great for tenants and great for the owner.
The Cash Flow Breakdown
Once the Toronto triplex conversion is complete and rented out, we’re estimating gross monthly rent around $6,100. After expenses and mortgage payments, the projected monthly cash flow is over $2,000.
That’s a big number, especially for Toronto. And this is before the garden suite even comes into play.
Bonus Potential: Converting the Garage
The garage at the back adds serious future value. There are two ways to go:
- Simple Conversion – Turn the existing two-car garage into a one-bedroom unit. This would likely rent for around $2,100/month.
- Full Garden Suite Build – Add a second storey to create a full-sized three-bedroom laneway house. This could pull in closer to $3,500/month and offer stronger long-term returns.
Either way, it’s a great way to add value without needing more land.
Refinance Strategy: When to Pull Equity
If the clients only do the Toronto triplex conversion, the expected after-renovation value is around $1.1 to $1.15 million. Not a huge lift from a refinancing perspective.
But if they also build out the garden suite, based on comps, the property could appraise closer to $1.6 to $1.7 million. At that point, there’s a strong case for refinancing and pulling out $500K in equity—which could be used toward the next purchase.
How We Can Help
This deal proves that strong cash flow is still possible in Toronto. But you need the right type of property, a clear strategy, and a team that understands how to maximize both the income and the long-term value.
If you’re not sure what’s best for your situation, let’s chat! We specialize in helping investors navigate the Toronto multiplex market with confidence. Our approach is based on real data, not speculation, so you can make informed investment decisions.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
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!
