The basement does not have a bath.I can spend about CAD 10-15 K and convert it into a duplex with 1 side yielding a rent of around CAD 1 K.The basement business gives CAD 2 K monthly, allowing me to effectively stay for free in the house.I have a few questions:Since no real estate agents are involved, what will be the best method to determine the correct value of the house?

With scenario 1, my concern is the opportunity costs that would come with purchasing a 300k home.

Is your first concern that the doors are large and formal, and that the rooms have large windows?

BRRR works and is really profitable, but if you want to ask about specific deals than you're going to find some that use this method poorly.

@Hiro Kitagawa, qualified improvement property has become a bit more interesting than your CPA made it out to be.Now, there is in fact a category for owners of non-residential real property called qualified improvement property (QIP) that as of 1/1/18 replaced the old qualified improvement property (yes, same), qualified leasehold improvement, qualified retail improvement, and qualified restaurant property classification rules, as well as includes some property that would not have fallen into those buckets previously.The committee reports indicated that QIP placed in service on or after 1/1/18 would be eligible for a 15-year depreciable life as well as bonus depreciation rather than the standard 39-year, non-bonus eligible method applied to non-residential real property.However, the law was not drafted correctly, i.e., there was a technical error, and the section of the tax code describing 15-year property (Section 168(e)(3)(E)) was in fact not amended to include qualified improvement property.So for now, strictly-speaking, in 2018, qualified improvement property is regular old 39-year property that is not eligible for bonus depreciation.We do expect that a technical correction to the law will be made, but for now the IRS has actually stated that it cannot guarantee that absent legislative correction it will accept the legislatively intended change in recovery period and bonus eligibility.Anyway, this is neither here nor there since you have stated you are a landlord of residential rental property rather than non-residential real estate.And this does not affect the application of 100% bonus depreciation to both qualifying new and used property place in service after 9/27/17 and before 1/1/23 that @Yonah Weiss pointed out.

Thanks @Steve Vaughan and @Wil Reichard,  So if I am not planning on doing the BRRRR method, because I don't want to deal with all the rehab that will be needed, how else would you go about it, given my situation?

The only concern I would have would be the holding cost of the HML.

If you are investing, crime shouldn't concern you.

My main concern is the fact that the railroad is in very close proximity.

I used to read the Gartman letter every morning which was concerned with commodities.