Depreciation tax deduction

[Grace C.]

So the tax code says that a rental property depreciates over 27.5 years, i.e. 3.64% a year. So does this mean that as a landlord, I dont pay tax until I make 3.64% x house price? 

And if I pay down 30%, it means that I dont pay tax until I make 12.1% on my investment? That sounds very good. Am I missing something?!