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Why Buy Scarborough Homes with Separate Entrance?
Scarborough homes with a separate entrance are the gold standard for savvy investors in 2026. They offer immediate potential for legal basement apartments (secondary suites), which can generate $1,800–$2,400+ in monthly rental income. This income can offset 40-50% of your mortgage, making homeownership in Toronto significantly more affordable.
Scarborough Homes with Separate Entrance
Investor-Friendly Guide to Income Properties
In a high-interest rate environment, the "income helper" suite has moved from a luxury to a necessity. Scarborough remains the best market in Toronto for finding these layouts. Unlike the cramped lots of downtown, Scarborough's post-war bungalows and backsplits were practically built for conversion.
Whether you are a first-time buyer looking to subsidize your mortgage or an investor seeking positive cash flow, targeting homes with an existing side or rear door is your best strategy. Here is where to look.
| Neighbourhood | Typical House Style | Avg. Entry Price (2025) | Rental Demand |
|---|---|---|---|
| Agincourt | Large Backsplits | $1.2M - $1.4M | High (Students/Families) |
| West Hill | Bungalows | $950k - $1.1M | Very High (near UofT) |
| Wexford-Maryvale | Small Bungalows | $1.0M - $1.2M | High (Commuters) |
| Malvern | Semi-Detached | $850k - $950k | Medium-High |
1. The "Bungalow Advantage"
The Holy Grail of investment properties is the raised bungalow. These Scarborough homes with separate entrance potential often have high basement ceilings and large windows above grade. This makes legalizing the unit significantly cheaper (less digging for egress windows).
You can find many of these in areas like Bendable and Woburn. If you are browsing detached homes for sale in Scarborough, prioritize listings that explicitly mention "side entrance" or "high basement ceilings."
West Hill & Highland Creek
Proximity to the University of Toronto Scarborough (UTSC) guarantees tenant demand. Bungalows here often sit on massive lots. Converting a basement here can yield premium student rents.
Cliffside & Birchcliffe
While expensive, homes here appreciate faster due to the lake and "Beach" vibe. A separate entrance here attracts young professionals who work downtown but want green space. Check out historic homes in East Toronto for unique character properties.
2. Semis and Townhomes: The Affordable Entry
You don't need a detached house to get rental income. Many semi-detached homes in Scarborough feature side doors that lead directly to the basement stairwell. This "split entry" layout is perfect for privacy.
Even some townhomes (especially end units) offer this feature. It is a lower entry price point that still allows for a "mortgage helper" unit.
3. The ROI of Legalizing
Buying a home with a separate entrance is step one. Step two is legalization. A legal secondary suite increases property value instantly—often by $100k+. It ensures insurance compliance and allows you to rent to high-quality tenants without fear of bylaw shut-downs.
Essential upgrades usually include:
- Fire separation (drywall/doors) between units.
- Egress windows for safety.
- Interconnected smoke alarms.
4. Things to Watch Out For
Not every separate entrance means a legal apartment. When viewing listings, be wary of:
- Ceiling Height: Ensure the basement is at least 6'5" in most areas.
- Shared Laundry: This can kill privacy. Look for layouts that allow for separate laundry or a truly common area.
- Parking: Do you have a double driveway? Tenants need a spot.
Frequently Asked Questions for Investors
How much does it cost to build a separate entrance if one doesn't exist?
Creating a new side entrance typically costs between $20,000 and $35,000 in Scarborough, depending on excavation needs and permits. Buying a home with one already installed saves you significant time and upfront capital.
How much can I rent a basement apartment for in Scarborough?
As of 2025, a renovated, legal 1-bedroom basement apartment in Scarborough rents for approximately $1,800 - $2,100/month. 2-bedroom units near transit can command $2,400+.
Do I need a permit for a basement apartment?
Yes. To be a "legal" second suite, you must register with the city and meet fire and building codes. Operating an illegal unit carries risks, including insurance denial and fines.
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