Work with a lender that does this day in and day out.

This next house will have a large mortgage and will definitely show as a loss on paper.

Usually have to add the lender as well 

It does not always make sense to have the note recorded on title as it can cause other complications down the road, but that also means much less protection for the lender so it really depends on the circumstances. 

With rents being inflated in this area I would rather paydown my own mortgage than someone else's.  

I think back then I called it "let-me-get-some-roomates-so-that-I-can-offset-the-mortgage-and-other-expenses". 

HI Bette,I am not a CPA, I am an investor myself and mortgage broker that focuses on helping with investor on expanding their portfolio in real estate.

Definitions can vary and be fuzzy lender to lender, program to program, and differ between "first time homebuyer" and "first time investor"

Here is a summary of the book.https://www.nateliason.com/notes/long-distance-real-estate-investing-david-greeneThe book also mentions the importance of having a rockstar Realtor, contractor, lender, and property manager.

Cash-on-cash returns are what remain after vacancy costs, mortgage, and expenses.