This is driving up the price of surrounding real estate which makes it closer to a gamble than an investment (which certainly may cut into cash flow). 

I currently have 2 rentals plus my primary and still have room to get another loan (based on lender feedback) so plan to exhaust my conventional loan options before having to get creative.  

Why you will get higher returns in the short term in a declining or static market than an appreciating marketHow do you profit from a static or declining market vs. an appreciating market.Declining vs.

If there's an undesirable lot or funky house they can't move, they'll negotiate on it much easier than an owner occupant who has an unrealistic expectation and can't afford to discount.

Not an exhaustive list by any means but some names of realtors who specialize in investment properties in Edmonton...Andrew Barrett Selena Cheung Corey Young Either I or my wife have had brief but pleasant conversations with each of them and while we have not done enough research on Edmonton to formally recommend any of them, they would be a good place to start. 

Second Home is worth 300kHe's asking 250kI'm sure others can give you far better advice than myself, but if I were you I would exhaust all of my lending options first, then start looking for a way to get seller financing, or a partner in the deal if the deal is sweet enough.

In the long run family is more important than an extra $500 dollars a month.

Is there a exhaust fan in the bathroom? 

.- I have aboue 10-20k that I could put down, but that would basically exhaust cash reserves- A 50K mortgage would be payable out of the excess earnings from my business with a moderate margin of safety (after paying the rent for the place I live and work out of, see note below). - While I haven't been pre-approved yet, I've been ballparked at 125K as the max loan I could take out. 

An A neighborhood property with 12% ROI is a very different thing than an advertised 12% ROI in a C neighborhood.