I am currently living in a detached single-family home in Niagara Falls, Ontario (some details below) and am debating keeping the house I purchased to renovate slowly or selling it in the current market and moving back to where my family is living.

Rents should be around 1500 and there is also a detached garage that could be rented out for ~$100 so the whole place should cashflow around 300 a month doing a long term rental with reserves accounted for.Is there something I am missing?

I also have some friends that have few detached homes with solar power and don't charge any electricity expenses at all but this is an exception. 

However, like many newcomers, the one obstacle I face is the availability of capital to fund a flip project.With that in mind, I'm reaching out to inquire if anyone in the Columbus, Ohio area might know of reputable hard money lenders or angel investors who are open to collaborating on real estate deals.

Option 1- Being a house hacker at heart, the sfh has a unique big detached garage with about 550-650 sqft of space on the second floor that has central a/c and heat, a deck, and electrical box (only thing I would need would be to extend the plumbing from house to garage, about 20 ft maybe (digging trenches in dirt) still needing a bath and kitchenette.

Purchase price: $102,900 Townhouse with detached garage.

Is it ok to turn a detached 2-car garage into an efficiency apartment?

The path I recommend for you is to house hack (rent out one unit, consider renting out rooms in your unit) a detached 2 unit property (either duplex or SFH with ADU).  

It has a 1200 sq ft. detached garage with electrical and HVAC already installed.

However, I've encountered an obstacle: my lender has informed me that banks typically do not provide FHA or conventional loans for amounts less than $75,000.