They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

Off the bat, I had a few questions that hopefully someone more experienced can help: 1. do auctions allow financing after winning the bid, or do they require entire amount to be immediately wired? 

Both allow you to avoid touching retirement funds while leveraging the value of your properties.

This is a self directed RRSP or TFSA account that allows you to lend your money out to people with the backing of their mortgage for a high interest rate. 1st, 2nd, 3rd mortgages, down payments, refinances, flipping or renovation money.

they told us the borrower is not allowed to choose a title company we have to use theirs. 

There are so many scams out there that we have to protect ourselves and unsuspecting tenants before allowing a showing.

Smoking is not allowed inside. 

Also, in regards to a per diem, I'd like to be a bit more optimistic that I can establish the right checks and balances to ensure that the contractor is not skipping corners.

Some costs MAY qualify as startup costs if the rental rises to a qualifying trade or business level under 195 as well.

I work with investors in Huntsville, and there are big things heating up here, as well.