The property is actually under a state LLC and the property is titled to my daughter who has her green card. However, the point of the LLC is that this house will assist me to supplement my pensions when I retire in a couple years. It is definitely connected to a US trade or business.
There is no witholding now as the house is titled to a US person and I myself was a US resident until shortly before I bought the house. And the house is specifically controlled by a US LLC.
From the link Anonymous sent, I see this paragraph:
If, on the other hand, the foreign investor is engaged in a U.S. trade or business such as the developing, managing and operating a major shopping center, the rental income will not be subject to withholding and will be taxed at ordinary progressive rates.
From this, then can I assume that I would pay taxes on my $6500 net income at the rate of 15%. Because this is what the progressive tax rate for me would be for this amount of income. However, I know I still have to kick in as much again to the Canadian government.