First, there is an upside and downside to investing in condos that many have mentioned: Upside: HOA fee is tax deductible and some expenses such as garbage, sewage, water, landscaping are rolled into it.

Of course, it looks like there is no real cash flow, but just the amount that you can deduct from your own outgoings.So to summarize, even if your figures are right, you'd be out of pocket something like $465/m instead of $900/m that your other tenants are paying.But if your figures aren't conservative enough, you could be out of pocket as much as your renters.Do you have any figures regarding your purchase price vs comparable ARV's? 

.), I've been tracking the mileage and I'm assuming that I can deduct half of it on the first unit since the other half is for the unit I'm living in that hasn't been placed in service yet.

Or do I return it minus deductions if the home is rented the following month? 

However, the math is confusing me and the tax deductions.

My question is, if I am using my cash flow to make payments on this personal loan, would it be possible to deduct this from my property income?

Greg, something to keep in mind that I learned from my CPA a couple of years ago (I am retired now, so not an issue these days), but if you make over ($150k I believe), your rental tax deductions cannot be claimed.  

There is a $150 charge for each draw that is deducted from the draw amount.

Thanks for your thoughts so far Levi.  

@Daniel DietzYour analysis is in the right direction, but not quite there.1) Determine the debt financing ratio - in this case .602) 60% of the gross income is then looked at by UDFI3) 60% of all deductible expenses are applied, so 60% of straight-line depreciation, 60% of the interest on the note, 60% of property taxes, etc.4) $1000 exemption applies5) The net amount after deductions and exemptions is then taxable to the IRA, and the trust tax table is used to determine the tax amount.Even if you have a negative UDFI liability, it can be worth filing the 990-T in case you can carry that loss forward to future years.We have a UDFI calculator on our website and if you PM me, I can send a link to you (BP does not want me posting that outside content on their forums).