I'm an investor and a Realtor in Toronto. I help a lot of my clients find cashflowing properties in the Annex area of Toronto. If you're interested in chatting further, drop me a line at firstname.lastname@example.org.
Clairlea is a good area to invest in. It's close to the beaches, bluffs, transit (Warden and VP stations), the danforth. They also saw some of the largest appreciation gains over the last year. I have not studied the rents in the area however but I'm sure they will not disappoint. There are also many developments going up in the area so if developers are going in you know they did their research.