Tax benefit on mortgage free rental property?

[Soomin Kim]

Hi BP community!

I am currently living in a 1 bedroom condo. Mortgage is almost paid off. Husband and I plan to buy bigger place and rent out this 1 bedroom condo. I heard if there is montage on rental property, you offset with rent income and mortgage expense. If mortgage is paid off and rented out, rent income will be reported 100%? Is there other way to reduce tax on rental property?

Thank you!