I totally agree with Noah and don't think you're overreacting at all! 

I'd say for a newer investor Edmonton is a much easier market to get started in. 

Based on the scenario, I would start by researching construction loan options.

So I've been doing my own taxes in Turbotax for 20 years now (I only own 2 rental properties but both were BRRRs), and I finally got stuck on something and went to a CPA 2 years ago, and he reviewed my past 5 years of returns and pointed out that I had made multiple mistakes (incorrectly categorizing repairs vs capex, calculating basis and therefore depreciation wrong, failing to realize that certain expenses for a home converted to a rental property start being deductible the day the property was placed in service vs actually occupied, the list goes on). 

A good policy for a place where nothing happens or one for total catastrophic insurance - the type where a fire destroys the house, or a tornado takes it away, including the bed bugs.

When I first started cleaning out my house, there were 3 young women and a child living in the attached house. 

Please let me know what you think I should do as I want to start renting these rooms out ASAP!

From there, narrow down your budget range and then start shopping more seriously.

I got a 5 month window from them in part because they don't want the owner to start advertising it for rent or having potential renters go by the home.  

Starting March 2025, Freddie Mac and Fannie Mae will enforce new lease standards for multifamily properties seeking financing, aiming to bolster tenant protections.