The problem comes in if the stock loses value, which means you’ll have to come up with more cash or the stock will be sold to cover your position.The beauty of investing in real estate is that you can participate with far less money than stocks.

Substantially All Participation Test.

@Shawn StitelerUsually if it's an equity structure, where you are splitting the cash flow, and not just paying a flat interest rate, then the investor participates in the upside of the opportunity also, the refinance proceeds and/or sale.

You also have to have materially participated (google the irs definition) .

The house is beautiful and it was renting very well but they lease is up and it will barely cover the mortgage if I rent it in the market so I have to sell it and pay mortgage until it sells.

You definitely don’t have to participate in it if you chose not to.

On top of this, you have to prove that you materially participated in the rental property business for the property to be able to take the net losses in the passive income against the active income (your fiances W2 work).

Thank you everyone who has participated in this forum thus far!

Not really, because you don't know what your final price would be until the auction ends, and you generally have to register with the auction site to participate, and many require you to close in cash, not to mention many investors are already looking there so if you win a bid you may be overpaying. 

Zillow is barely reliable for SF home rent in an area with plenty of comps.