[johnsjmc]

Canadian mortgage rules now require at least a 20% downpayment on a second or investment home. You also want a mortgage to allow you to deduct the interest to offset the income.
Pay off any non deductable debt first. Invest any surplus elsewhere to remain diversified in case the real estate bursts like the US did.
If you use the rental house for personal use part of the year that needs to be factored or prorated as you can,t deduct expenses for a personal use property.
That all considered a nice piece of real estate you would live in ,not a slum ,would be my choice. It may not cash flow as well but will likely realize a larger capital gain down the road. It also attracts a better tenant (often with high expectations of service from the landlord)BUT they are less likely to disappear in the night when the rent is due.
I had about 15 units in London at one time but looking back it would have been just as profitable to have concentrated on a fewer good places.
I just sold a 4 plex I bought in 1986 .I had about $150K in it and sold for $480 .It was making money or at least breaking even most years on paper but I got tired of dealing with the same stuff over and over.