From One Lot to 12 Doors: Toronto’s Smartest Missing Middle Strategy

Forget skyscrapers. The smartest density in Toronto is happening one severed lot at a time—here’s how small developers are turning single lots into 12 doors of cash flow.

Toronto’s housing conversation is finally shifting. After years of pushing high-rise condos as the only answer to our supply crisis, the city is waking up to something smaller—but smarter:

Lot severance & multiplex development.

This is the game changer for small builders. If you have a 50-or 60-foot lot, you may be sitting on the possibilities of constructing not 1 but 2 six-unit apartment buildings—legally and lucratively.

Let’s take a step by step through why, how, and what makes this one of the strongest plays in today’s real estate market.

1. What Is Lot Severance (and Why It Matters Today)

Lot severance, also referred to as “consent to sever,” is where you divide legally one lot into two distinct lots. Each lot is now an independent parcel with an independent title.

Previously, this used to be a slow, agonizing procedure riddled with red tape. Nowadays? Due to Ontario’s initiative for increased housing, municipalities are under tight pressure to sanction gentle intensification.

Here’s how that applies to you:

  • You take one 60-foot lot
  • Split it into two 30-foot lots
  • Build a 6-plex on each

That’s 12 rentable units—without rezoning and without constructing a tower.

You’re developing high density in a low-rise context that neighbors, planners, and tenants all appreciate.

2. Why It is Effective: You’re Operating Within the Guidelines

One of the charms of this tactic is that you’re not requesting special treatment from the city.

Due to the zoning reform with respects to all of Toronto, six units are allowed as-of-right in any residential lot. Breaking up the lot doesn’t make a difference. Each of the new parcels is considered an independent lot, with each such lot being allowed a 6-unit construction.

You avoid:

  • Protracted rezoning fights
  • Protracted delays
  • Neighborhood pushback

It’s legal, efficient, and scalable.

And since you don’t trigger added density, you don’t have to pay extra costs associated with exceeding 6 units per structure.

3. The Financial Impact Is Real

Let’s talk numbers. Here’s a simplified example of how this could play out:

  • Purchase a 60-foot lot in Scarborough: approximately $950K
  • Split the lot: ~$25K–$35K in total (survey
  • Build two 6-plexes: ~$2.2M–$2.5M construction
  • Total cost: ~$3.3M–$3.5M all-in
  • Monthly gross rent (12 properties x $2,200 avg): $26,400
  • CMHC MLI Select financing @ 4%: covers up to 95% loan-to-cost

This is favorable cash flow in a stringent interest-rate environment, and it accumulates long-term equity from day one.

You’ve taken one neglected lot and transformed it into a purpose-built portfolio of rentals.

4. Scarborough Is Built for This

This play doesn’t work everywhere. But Scarborough? It’s tailored for it.

  • Bigger-than-average lots
  • Less heritage restrictions
  • Less opposition to low-rise infill
  • Proximity to Future LRT & Transit Expansion

Numerous 50–60 ft lots feature offside laneways, laneway access in the back, or extensive frontages along wide streets—ideal for planning two compact buildings with front and rear entrances, trash staging, and parking.

This isn’t just theory—we’re actively doing this.

5. What Investors Love About Lot Severance Builds

If you construct two 6-plexes rather than one, you:

  • There are two doors
  • Enhance economies of scale
  • Build long-term cash flow
  • Add two CMHC-eligible apartment buildings to your investment portfolio

And also, since every 6-plex is now an independent asset, you can refinance one, sell one, condo-convert one, whatever your plan dictates. You are adding flexibility without adding complexity.

Investors prefer flexibility. They adore cash flow. And they are eager to invest in smart, scalable plans such as this.

This Is How We Scale Without Skyscrapers

Not all lots have to be a condo complex. Not all projects must be in planning for 5 years.

Lot severance with 6-unit multiplexes is the silent revolution in Toronto housing—and smartest means of increasing density without upsetting neighbourhoods.

It is quick. It is lucrative. And it is working today.

If you’re an investor looking to partner on projects like this, or you’ve got a lot that might be eligible—let’s connect.

This is how we construct actual supply, fix actual problems, and earn actual returns.