@Benjamin CowlesI think the short answer is just because a lot is owed on a house compared to what it is worth, don't overlook them. 

Using Vancouver as a data point to justify Toronto'a comparatively calm market is self rationalization.Yes, the divergence of real estate prices to the underlaying economy may continue for a few more years and, if folks are fortunate, it will gear down slowly on its own with only a small retrenchment in prices.  

@John VietmeyerIt all depends on your location and other comparable homes.

This will allow you to start learning how to determine what the value of a property by seeing what other houses sold for comparable to your subject property (Comps). 3.

My parents are trying to decide whether or not to payoff the mortgage on a single family rental they own in Las Vegas.  2  I'm trying to do a ROI analysis so that we can compare whether or not they should keep the 100,000 in the stock market or not.3.  

Buyers are generally able to acquire these properties at a higher CAP Rate than a comparable Class A property because these properties are viewed as riskier than Class A.

I'm having trouble finding comps to estimate ARV for my potential house because no other houses have this view/water area and there are few other ranch houses in this city.Does anyone know a source/website where I can see the sold prices for houses on just Smith Street so I can compare apples to apples?

While there are many great facets to commercial real estate there are also many differences compared to residential (SFR or multifamily).

I hope my first deal is close to as good in terms of numbers compared to yours.

I would compare with other rentals in the area, if what you have know will give you top dollar than I would leave the kitchen alone, but if not, than I would compete with the others rentals by investing money into the kitchen and bathrooms.