We have all lived in a very comfortable environment of low-interest rates and quantitative easing/easy money policies for a number of years, and this has benefitted both home owners and ordinary real estate investors with low leverage costs.

Also, when I eventually sell the property and am required to begin withdrawals at age 70 1/2,  wouldn't my withdrawals be taxed as ordinary income vs being taxed as a more favorable long term gain outside my IRA?

It is ordinary income.  

It's ordinary Income

Here is a brief explanation of Passive activity loss:Passive Activity Loss Rules: A set of rules that prohibits using passive losses to offset earned or ordinary income.

When something out of the ordinary happens it not always a reason to get extra money.

My understanding is that if you make under $100,000 a year you can deduct depreciation against your ordinary income up to $25,000.

Over time the seal of double pane window will fail and result in condensation forming between the two panes..... ordinary wear & tear.... not chargable.2.

Well, not considering any cap gains tax, it's just about completely depreciated, so.....the prorated building portion of say $550 of her $625 purchase price, so somewhere around $500k in depreciation recapture taxable as ordinary income, max rate at 25%.

You are going to pay UBIT on the financed percentage or the ordinary income of the business.