Does anyone know if a Canadian Investor has a different tax treatment on proceeds if they are a lender vs. an owner?

State law governs the treatment of funds held in a trust or as a deposit.

Furthermore, the Internal Revenue Service has also taken the position that if the replacement property is sold immediately after your 1031 Exchange transaction is completed then it was not held for a sufficient period of time to qualify for 1031 Exchange treatment.Little Definitive Authority on Holding PeriodWhile there is no actual holding rules or regulations and very little definitive authority on a holding period, in one private letter ruling the Internal Revenue Service has stated that a minimum holding period of two (2) years would be sufficient to meet the Qualified Use Test, and a number of court decisions have also taken the same position (although they have been somewhat more liberal than the Department of the Treasury and the Internal Revenue Service).Intent to Hold is Important FactorThe period of time that you hold title to the property, although important, is not the only factor the Internal Revenue Service will use to determine whether you had the intent to hold the property for investment and therefore qualify for 1031 Exchange treatment.

State on the form that quarterly inspections are performed on any unit that has animals to ensure there is no destruction or odors.As far as the medical professional, give them a form that states the animal is required for treatment.

My last one (3 bdrm, 1 bath, 2 car SF house) ran me about 16k for everything (i.e. new flooring, drywall repair, scraping popcorn ceilings off and re-texturing, new ceiling fan, new fridge, landscaping, all new interior & exterior paint, some new electrical, foundation repair, termite treatment, complete gut & remodel of bathroom, two new doors and all new door hardware through the house, new water heater, etc etc etc).

A principal residence does not qualify for 1031 tax treatment.Even if you convert the property to a rehab-flip, you still don't qualify for 1031 tax treatment.

It's hard to prove, but I suspect that offers made directly with the REO listing agents often get preferential treatment.

A lot of their lower-priced properties are good for rental plays and a lot of the higher-priced properties out of my reach (finance and experience wise), that's not to mention the prefered treatment their accredited investors get. 

For taxes, the IRS treats them the same...same forms, same tax treatment.

Make sure that the properties that you have the intent to acquire properties for rental, investment or business use and then hold them (season them) for a period of time in order to demonstrate intent so that you can qualify for 1031 Exchange treatment.