Project Blueprint: Scarborough

Scarborough Conversion: Vertical Density & Subterranean Yield

Transforming a standard 3-story townhouse from a single-family rental into a highly optimized, 5-unit micro-community.

Before Gross Income (CAD)

After Gross Income (CAD)

Peasant Victory (CAD)

The Lower Suite (Basement Activation)

Strategy: Monetizing Dead Space. The basement was previously un-monetized square footage functioning strictly as storage and a mechanical room.

The Execution: We fully separated and renovated the footprint. By accepting the architectural constraint of having no dedicated living room, we maximized the available layout to install a highly functional kitchenette, a private bedroom, and a full bathroom.

  • Previous Yield: $0

  • New Rent: $1,500/mo + 20% of total property utilities.

The Vertical Rooming House (Main Structure)

Strategy: Segmented Density Optimization A massive 3-story townhouse is underutilized by a single family. We pivoted to a rooming model, strictly limiting occupancy to one person per bedroom to preserve the asset and prevent tenant fatigue.

The Execution: The ground floor was preserved entirely as communal living, dining, and kitchen space. We segmented the sleeping quarters vertically, with two bedrooms sharing one bathroom on the 2nd floor, and two bedrooms sharing one bathroom on the 3rd floor.

  • 2nd Floor (2 Rooms): $2,000/mo ($1k/each)

  • 3rd Floor (2 Rooms): $2,000/mo ($1k/each)

  • Total Yield: $4,000/mo (All-inclusive)

The Utility Matrix (Overhead Management)

Strategy: Controlling Variable Costs In the prior setup, the single tenant paid 100% of the utilities. Transitioning to an “all-inclusive” rooming house model introduces variable cost risk to the landlord.

The Execution: To hedge against utility inflation, the basement tenant absorbs 20% of the total property utilities. The remaining 80% is comfortably absorbed by the massive +$3,000 cash flow delta generated by the premium $1,000/room rates in the main house, ensuring net operating income (NOI) remains incredibly strong.