There are, of course, also things like politics and tax policies preventing the New York side from developing its tourism sector to be on par with Ontario... 

As soon as people receive their tax refund checks, they will be knocking down your door.

It is a very secure investment, and it is almost impossible to lose money on this deal.

How is it a tax strategy though?

Many people get this confused thinking that is take-home (NET) income, when it should be BEFORE taxes GROSS income. 2.

And given #3 above, it leaves about 20% of rent for all other expenses like property tax, insurance and other PM expenses like leasing fee, eviction fee and other minor expenses like for e.g landscaping, pest control etc.

Expenses will level off: Multifamily operators have been plagued by expense increases in the form of taxes and insurance, for the last few years, especially in the south, and especially in Florida and Texas.

I would say pay the taxes.  

Immediately, I performed a Roth conversion, and instead of paying taxes on $50K I'm paying taxes only on $21K.

Also make sure to consider all the aspects you can including the tax differences.