You should really convert the basement to a seperate residence, so you can independently live there, while also providing the same conveniences to the renter upstairs.

Rent to a family.

Being a landlord does suck. I have worked closely with a real estate investor managing 30 residential rental properties.

I would say the two biggest issues are the quality of tenants and the quality of homes.

Central A/Cs die. Whole homes need to be repiped. Roof leaks.

Tenants do not pay or will have 5 people in a 2 bedroom home. Eviction is costly and time-consuming.

The only real estate I would consider as an investment right now is something commercial/industrial, like a group of warehouses or office suites, something with multiple renters.