Now after looking and not finding  something  halfway decent that we can afford, have gone back to where we were in the beginning... that  is to buy a nice SFH in a good neighbourhood and  rent it out.  

I am just frustrated over voucher holders start looking for homes before they are actually ready to move. 

Someone can correct me if I'm wrong, but if you don't have $200K ready right now and access to $800K in loans (traditional or private), then you'll have a hard time getting into the Toronto Market.Hamilton is the closest, most affordable market going west ($60K down, $240k mortgage, on MLS).

Kris, it all depends if that neg cash flow is affordable.

I can honestly say that I have been in your shoes before in regards to not knowing all the terms and I understand that it can be frustrating at times.

The news and a few big names had a role also in creating uproar on vacation rentals and blames them for the lack of affordable homes. whatever your stance.

I don't ask, "Can I afford this."

Being self-employed and only three years of credit history makes it really hard to qualify for a mortgage.  2019 is finally going to be the year that I can afford one... because my last two years of tax returns show I've made enough money to get approved for a mortgage. 

My wife and I want to purchase it from our Aunt and Mother (who are adamant about selling it) but can only afford 450K.

Another option would be to see if someone would loan you $6600 and take a lien against the equity in the property (although it doesn't sound like there is much) and then resume payments on the home....But at the end of the day, if you have exhausted all efforts to keep the home you may want to consider just listing it and walking away with $15k (before it is all gone in fees and missed payments) and starting over somewhere more affordable.