This five-bedroom, one-bath diamond in the rough home in Little Italy is listed for under $1M

Price : $988,800 Neighbourhood : Palmerston-Little Italy X-factor : In Toronto’s Little Italy, a rare three-storey semi-detached home at 2 Dewson Street is drawing eyes — not for its polish, but for its potential. Nestled in one of the city’s most beloved neighbourhoods, the home provides access to city skyline views, including the CN Tower, from multiple angles and floors. With a third-floor terrace, second-floor solarium and five bedrooms spread across two upper levels, the layout lends itself to transformation — either into a grand, single-family residence or a collection of rental units.

The main floor features a cozy front living space with a fireplace. The kitchen looks out to the backyard. The home has five bedrooms spread out in its second and third floors.



A walkout to a rear terrace on the third floor offers a view of the CN Tower. But the property, now listed for just under $1 million, is no turnkey. In fact, it’s an estate sale in need of serious renovations.

“It’s an all-original house,” said Jarrod Armstrong, a Toronto-based real estate agent. “Top to bottom, it needs a lot of work, whether someone’s willing to do that in this market.” He estimated that it needs $500,000 worth of renovations “at the very minimum” — likely more for higher-quality work.

An expert estimates that the home will need at least $500,000 worth of renovations. The home sits within walking distance from more than a dozen schools, grocery stores and bus stops, with the closest TTC station just about 15 minutes on foot. Among the renovations necessary are underpinning of the home, opening up its walls and adding more bathrooms — the property only has a single two-piece bathroom.

Still, Armstrong thinks it could make a “lovely home” for the right person. “For a homeowner, a three-storey semi with five bedrooms, it’s a lot of home and potentially good bones to work with,” he said. Will it sell for its listing price? Even in its current condition, Armstrong said homes like this don’t typically go for under a million in Little Italy.

“A three-storey semi in that neighbourhood, they don’t sell for $900 (thousand), they don’t sell for under a million dollars.” The steep price drop over the past year — from $1.45-million in June to its current listing — suggests a cooling market.

But Armstrong said the pricing is less about market value and more about strategy. “It’s simply a sales tactic,” he explained. “They have listed low ahead of an offer presentation event.

In this market, that tactic is really hit or miss.” With offers expected shortly, Armstrong cautioned that if the sellers don’t hit a value “acceptable to all parties involved,” the home will likely be re-listed for a higher price, though likely lower than its original listing price. Armstrong thinks it’s unlikely that offer presentations will be successful.

The home’s small lot — just 21 by 78 feet — may deter buyers looking to invest heavily in renovations, he said. Fully renovated homes in the area are listed anywhere between $1.3 million to $1.

7 million. Armstrong estimates that renovating the Dewson Street home could catapult it to “a different stratosphere of value.” Who is the ideal buyer? “It’s a very professional couple who love the neighbourhood and are willing to take on a big project like this,” Armstrong said.

“Someone willing to carve out a dream home and make it their own, and make all the right decisions from day one.” He notes they’d be buying into one of the city’s most desirable communities. “Little Italy is one of the best, most sought after, vibrant communities within the city of Toronto,” Armstrong said.

“It’s as good as it gets for desirability.” The home sits within walking distance of more than a dozen schools, grocery stores and bus stops, with the closest TTC station about 15 minutes on foot. In addition to Little Italy’s businesses, the neighbourhoods of Koreatown, Kensington Market and Chinatown are also close by.

While the home might not be ready for move-in — or even casual viewing — it’s a rare chance to shape a future in a treasured part of the city. “It’s just an incredible opportunity,” Armstrong said, “if someone’s willing to do the work.”.