Rosewood's newer construction means a legal secondary suite there was more likely built with a permit already in hand than in an older, established neighbourhood, which supports pricing the tenanted income confidently rather than discounting for uncertain legality.
If you choose vacant, plan the tenancy's end around the notice periods The Residential Tenancies Act, 2006 requires rather than around your ideal listing date, since ending it improperly can delay the sale you were trying to speed up.
The right choice comes down to which buyer pool actually wants your specific property. Get your hand-reviewed valuation from Joel Dyck.