Tax Deduction question for STR Arbitrage

[Kyle Bambu]

Let's assume you are paying 1k a month to rent an apartment. You then rent out that apartment and make 1.5k a month in revenue. Assume you have no other expenses. Now, let's also say you have other rental properties and somehow you are able to deduct all but $500 in profits from your taxes. Since the 1k a month rent is a "reasonable and necessary" business expense isn't that fully tax deductible? So essentially, you are able to deduct your last 1k in profits (500 from the STR profit and 500 from your other rentals) and thus pay 0 taxes? Am I understanding this correctly or could you essentially use rental arbitrage to gain a pretty significant tax advantage?