How the Deal Score Works
The data sources and investment formulas behind every property rating — so you can trust the number.
Important: Deal scores are calculated using publicly standard investment metrics: estimated cash flow, capitalization rate, cash-on-cash return, price-to-rent ratio, and secondary suite potential. These scores measure investment return potential for rental property investors. They do not assess property quality, condition, neighbourhood desirability, appreciation potential, or suitability for owner-occupants. A property with a low investment score may be an excellent home — it simply means the current price-to-rent ratio produces lower cash returns at today's mortgage rates. All estimates are approximate and should not be relied upon for purchase decisions without independent professional advice.
What is a Deal Score?
Every property listed on MississaugaInvestor.ca receives a deal score from 1 to 10. This score represents the estimated investment return potential of the property based on its current asking price, estimated rental income, and standard investment metrics used by real estate investors.
Scoring Components
The deal score is a weighted combination of five key investment factors:
Cash Flow Analysis
35% weightEstimates monthly rental income minus mortgage payments, property taxes, insurance, maintenance, and vacancy costs. Properties with positive cash flow score higher.
Yield / Cap Rate
25% weightNet operating income divided by property price. Higher cap rates indicate better return on investment relative to the purchase price.
Cash-on-Cash Return
15% weightAnnual cash flow divided by total cash invested (down payment plus land transfer tax and closing costs). Measures the return on the actual money you put into the deal.
Value Assessment
10% weightGross rent multiplier (price-to-rent ratio), plus bonus points for longer days on market and price reductions — both of which may represent negotiation opportunities.
Market Signals
15% weightCombines basement suite potential, transit access, and school quality. Legal or convertible basement suites add income potential, while transit and school scores reflect location quality for rental demand and long-term value.
Model Assumptions — Every Input, Disclosed
Every cash flow, cap rate, and score on this site is computed from the same set of assumptions, applied identically to every listing. Nothing is hidden. If your financing or operating numbers differ, run your own scenario in the mortgage calculator.
| Down payment | 20% (investment-property minimum) |
| Mortgage rate | 4.89% — 5-year fixed, Canadian semi-annual compounding |
| Amortization | 25 years |
| Property tax | Actual listed tax when available; otherwise the municipal residential rate (e.g., Mississauga ~0.84% of price) |
| Insurance | $225/month |
| Maintenance reserve | Greater of 8% of rent or 1% of property value per year (a condo fee replaces it) |
| Vacancy allowance | 5% of gross rent |
| Property management | 0% (assumes self-managed) |
| Closing costs (in cash-on-cash) | Land transfer tax + $3,000 legal/title/misc. Toronto and its amalgamated districts also pay the municipal land transfer tax, which is included for those listings. |
Where rent estimates come from
Rent is estimated from a per-neighbourhood, per-bedroom rent table calibrated against TRREB rental market reports and public rental platforms (2025–2026), with adjustments by property type (detached +$250/mo, condo −$150/mo, purpose-built multi-unit +$800/mo). Where a neighbourhood is unknown, a conservative GTA price-to-rent ratio is used as a fallback. Rent estimates are estimates — always verify against current lease comps before offering.
How basement suite income is treated
Suite income is only added when the listing remarks explicitly indicate a suite, and it is tiered by confidence:
- Legal suite (listing states “legal basement,” “registered suite,” etc.): full basement market rent is added — roughly $1,400–$2,000/mo depending on basement bedrooms.
- Suite potential (separate entrance, in-law suite, basement apartment mentioned, but not stated as legal): 85% of basement market rent is added, discounted for permitting uncertainty.
- Finished basement only (no separate entrance mentioned): $0 suite income. It is treated as a feature, not a rentable unit.
When a listing shows positive cash flow driven by suite income, the suite detection is shown on the listing (“Basement Income” in Key Facts). Always verify suite legality with the City of Mississauga before relying on that income.
Transit Score
Each Mississauga neighbourhood is assigned a Transit Score from 1 to 10 based on proximity and access to GO Transit stations, the Hurontario LRT line, MiWay bus routes, and major highway interchanges. Higher transit scores indicate better connectivity, which drives stronger rental demand and faster appreciation.
How Transit Score affects Deal Score (within Market Signals, 15% weight):
- Transit Score 8-10: +2.0 bonus points
- Transit Score 6-7: +1.0 bonus point
- Transit Score 4-5: +0.5 bonus points
- Transit Score below 4: no bonus
School Score
Each neighbourhood receives a School Score from 1 to 10 reflecting the quality of nearby public and Catholic schools based on provincial test results, Fraser Institute ratings, and parent reviews. Top-rated school zones attract stable family tenants, reduce vacancy, and support long-term property values.
How School Score affects Deal Score (within Market Signals, 15% weight):
- School Score 8-10: +1.5 bonus points
- School Score 6-7: +1.0 bonus point
- School Score 4-5: +0.5 bonus points
- School Score below 4: no bonus
Score Ranges
Strong Deal
Good Deal
Average
Below Avg.
Important Limitations
- Scores are based on estimated rental income, not actual rents.
- Property condition, renovation costs, and maintenance requirements are not factored in.
- Neighbourhood desirability and appreciation potential are not measured.
- Scores assume standard financing terms and may not reflect your specific mortgage rates.
- This is not an appraisal or broker price opinion.
- Always conduct your own due diligence and consult professionals before investing.
Common Questions
What is a deal score on MississaugaInvestor.ca?
Every property listed on MississaugaInvestor.ca receives a deal score from 1 to 10. The score represents the estimated investment return potential of the property based on its current asking price, estimated rental income, and standard investment metrics used by real estate investors. A higher score means stronger expected cash flow and investment returns at today's mortgage rates.
How is the deal score calculated?
The deal score is a weighted combination of five investment factors: Cash Flow Analysis (35% weight) — estimated monthly rental income minus mortgage, taxes, insurance, maintenance, and vacancy; Yield / Cap Rate (25% weight) — net operating income divided by property price; Cash-on-Cash Return (15% weight) — annual cash flow divided by total cash invested including down payment, land transfer tax, and closing costs; Value Assessment (10% weight) — gross rent multiplier plus bonuses for longer days on market and price reductions; Market Signals (15% weight) — basement suite potential, transit access, and school quality.
What assumptions does the cash flow calculation use?
The model uses a fixed set of assumptions applied identically to every listing: 20% down payment (investment-property minimum), 4.89% mortgage rate (5-year fixed, Canadian semi-annual compounding), 25-year amortization, $225/month insurance, 8% of rent maintenance reserve (or 1% of value, whichever is greater), 5% vacancy allowance, and 0% property management (assumes self-managed). Property tax uses the actual listed tax when available, otherwise the municipal residential rate.
What do the different deal score ranges mean?
Deal scores are grouped into four tiers: 8.0 or above is a Strong Deal — the property shows above-average cash flow and investment metrics; 6.5 to 7.9 is a Good Deal — solid investment fundamentals at current market prices; 5.0 to 6.4 is Average — typical for the current Mississauga market; below 5.0 is Below Average — cash flow is negative or very thin at the listed price. A low investment score does not mean the property is undesirable — it means the asking price produces lower investor returns at today's rates.
What are the limitations of the deal score?
Deal scores have several important limitations: they are based on estimated rental income, not actual rents; property condition, renovation costs, and maintenance requirements are not factored in; neighbourhood desirability and appreciation potential are not measured; scores assume standard financing and may not reflect your specific mortgage rate; and this is not an appraisal or broker price opinion. Always conduct independent due diligence and consult professionals before making any investment decision.
This score measures estimated investment return potential only — not property quality, condition, or desirability. Scores are based on mathematical calculations using list price, estimated rental income, and operating costs. A low investment score does not mean the property is undesirable — it means the current asking price relative to estimated rental income produces lower investor returns. Scores update as prices change. This is not an appraisal. Hamza Nouman, Sales Representative, Cityscape Real Estate Ltd., Brokerage.