Tax deductability of cash out financing after cash purchase

[Bruce Filgate]

I am new to REI and was hoping someone on this forum could help....

I have purchased a foreclosure for cash, am rehabbing it then want to do cash out financing and make it a long term rental.  I have read that the interest on cash out financing may not be deductible.  There is another post on this subject on BiggerPockets, but the thread is not conclusive.

Is there someone out there who knows the tax rules on this who can speak to it - and if you know the IRS pub to reference that would be great.  

Any info on this would be much appreciated!