Can anyone advise on if this is true, and, if so why and what alternatives can be put in place to still allow us to do the work personally?

I am open to an alternative solution but they seem like they using intimidation tactic via email like call my strategy theft (something I take offense to) and that they will not pay and I should figure out the impossible.

Could an inspector look at the house at that point and certify that there are no asbestos materials inside?

Being on title protects the seller from the buyer defaulting - it seems this is an alternative to "officially" putting them in a 2nd position)-- Title company sends seller the $350K they require-- Title company sends buyer back $650K (which they can use to pay off their transactional lender if they used one)So now the seller is happy bc they got the $350K they needed, the buyer is happy bc they acquired a property for zero dollars out-of-pocket, and from what I understand the 1st position lender is happy bc due the LLC arrangement the seller finance component is not technically considered a second lien on the property.

The only quick number there might be is doubling the cost of materials to add in labor, but that's not guaranteed - some jobs have few materials and a lot of labor and others are opposite. 

Alternatively, does anyone have any recommendations on books or podcasts specific to Canadian Real Estate Investing?

would an alternative route be getting a limited FHA 203(k) Loan to purchase an auctioned home or does FHA 203(k) require an inspector first as well?

@Forest WuBroker dealers search you will want to find those investing in alternative investmentsHappy to send you a list

You can start as a passive investor, and look at alternative active strategies.

If you were to partner with another more experienced investor to purchase a short term rental, do a cost segregation, and "materially participate" then you could gain the benefits you are looking for without negatively cash flowing, and you could work out a deal where you maybe only have to materially participate for the first year to claim your tax benefits and then you can act as a more passive investor.