09/24/2026
WHAT WOULD YOU DO? | 1228 FAITH DRIVE, LAKESHORE — PART 2
This 132’ × 612’ property could be an estate-style development—but I’m looking at it as an investment.
Option 1: Keep the existing home as a rental.
Option 2: Add three units, potentially creating four units under Lakeshore’s current permissions, subject to all requirements.
Option 3: My choice—rezone and construct five neighbourhood-compatible, 2.5-storey 9-plexes.
That creates 45 purpose-built rentals:
• 30 two-bedroom units at $2,200/month
• 15 one-bedroom units at $1,800/month
• Gross rent: $93,000/month or $1.116 million/year
At a 25% expense ratio, projected NOI is $837,000. At a 5.4% cap rate, the estimated stabilized value is $15.5 million.
THE DEVELOPMENT:
• Purchase: $699,000
• Construction: $1.764 million per 9-plex
• Total hard costs: $8.82 million
• Total modeled cost: $10.96 million
• Cost per unit: approximately $244,000
• Potential value created: approximately $4.54 million
• Yield on cost: approximately 7.6%
At 4.3% over 40 years and a 1.10 DCR, the model supports approximately $14.52 million of insured mortgage capacity. Net proceeds before the financed premium are approximately $13.95 million.
The model shows approximately $2.99 million in refinancing proceeds above cost, while retaining approximately $983,000 in stabilized property equity. Projected cash flow after debt service is $76,100 annually or $6,340 monthly.
This cash-out is theoretical and subject to lender/CMHC approval, appraisal, eligible costs and equity-retention requirements.
Five 9-plexes. Forty-five homes. Bingo.
If there is a property that interests you, let me know, and I will let you know what I would do with that property!
Listed by Buckingham Realty.
Analysis by Nathan Caldwell, Broker of Record, Stake Realty Inc., Brokerage.
For educational purposes only. This is not financial, legal, planning, tax or investment advice. All figures and approvals require independent verification. Results are not guaranteed.
