Q for CPAs. David G once mentioned doing a loan every 15 yrs

[Melissa Jones]

Hi CPAs, David Greene once mentioned taking 15 properties where you own them free and clear and doing a loan on one every year for 100k for a 15 year term and every year doing this with one of your properties to live on 100k of tax free money indefinitely.  My question is does this make the best sense?  If you just lived off the rents instead of doing a loan you'd be paying tax on the rents but if you did the loan you'd be paying interest to the bank instead of taxes.  Assume a 24% federal and 6.27% WI state income tax.  Of course I should ask are rents taxed at income tax rate?  Also if you did the loan figure 2k of closing costs & 5.5% each time as well.  (doing 5.5% since investment property is a bit higher and we arent likely to stay at these ultra low rates forever).

Thanks for your thoughts!

~Melissa