Curiosity...

Ultimately I would say that your decision should take into account whether that $100 in cash flow at the fixed rate is likely to outweigh the interest you will pay over the course of the loan, divided by the number of years you have the loan, divided by 12 so you can get a direct comparison of that increased cash flow vs the interest accrued monthly over the term of the loan. 

Like Elizabeth said, in Ohio anything held in security over what constitutes one month's rent requires interest to be accrued and paid.

I found the following in "The CPA Journal":IRC section 163(d)(3)(A) defines investment interest as interest that is paid or accrued on indebtedness properly allocable  to property held for investment.

Just out of curiosity, what is it that a RE inclined CPA can do that a regular CPA can/may not?

Also, who is the PM out of curiosity?

For my own curiosity, I kept the conversation going: I asked for the conditions I could get when asking for a loan. 

I've now accrued a list of 278 specific houses that meet my criteria with owners in pre-foreclosure, and I sent to 99 to try it out. 

@Kenny Dahill   out of curiosity, is there a maximum upfront rent you can ask?

I'll call out of curiosity, but I have no expectation.