there just aren’t many sold properties in the neighborhood in the last 3 months and even out to 6 months is limited.

Even with a property manager taking a percentage, you’d still see a return, and it might save you a lot of stress managing the property from out of state.

Is that why you’re leaning toward renting, even with a $1K/month loss?

From my understanding, no one is employed, they are somehow current with the rent, but they are definitely not someone I would offer a new lease...not even at market rate.  

Your construction skills can give you a significant advantage, allowing you to save on rehab costs or even flip properties for capital.

With hardwork and ceasing opportunities we've managed to be part of this major asset and making it even better.

Maybe...There's not enough info here to even speculate, but it's absolutely true that properties can sell based on the highest and best use and not necessarily today's retail value. 

I truly believe she had a medical condition and shouldn't even live in my house, should probably live in elderly housing or the like.

Even still, it could be said that I've still lost money due to my time on the tools instead of prospecting as a real estate agent (the cost of lost opportunity).If you can truly do 80%-90% of the work yourself (at acceptable quality levels) and you aren't sacrificing your time where you can get better returns for your efforts, then yes, it can work even up here in Canada.

I've been following the build-to-rent method for some time and even lived in one for 2 years.