With the new tax law in place my understanding is that interest rate deductions are capped at $10,000 per year. 

With the new tax law in place my understanding is that interest rate deductions are capped at $10,000 per year. 

This needs to be deducted from the rental income as a expense.

@Nick Kellar,Just looking at the work you did, looks like the improvements will be added to the basis of the property rather than the deducting it this year. 

You get al the same deductions without it.

If he did finance it this way to me, would I have the proper documentation to deduct interest etc?

@Jacob D AdamczakThere is no one right answer and a lot of other factors beyond just the simple one at hand come into play - age, other savings, goals, time you expect to be with this employer, etc.That company match paired with the tax deduction you get on your own contribution are essentially free and immediate return on investment. 

The rules don't change much in terms of what is tax deductible just because it sits in an LLC.You are correct in that putting it in an LLC prevents you from getting government agency (i.e. fannie) backed debt, which is allowed on up to 4 unit buildings. 

That is deductions imposed if they do not like the peelers.

I assume you can still take the full interest expense as a deduction to your income, so effectively you're saving money by not paying taxes (you're not collecting rent for yourself, but you are getting tax deductions for it!)