Is that interest considered income for tax purposes when I haven't "touched" it? 

Is that a loss I would be able to spread over several years for tax purposes?  

Which leads into my next question of whether or not to buy 1-2 multifamily homes or 4-6 single family homes?

Two of the safe harbors that can help you deduct improvements are below:1) 2500 de minimis safe harbor.the safe harbor applies to amounts paid during the tax year to acquire or produce what the regs call a “unit of property” (UOP), you must meet these requirements: (1)you need to have written accounting procedures treating as an expense for non-tax purposes amounts paid for property costing less than a specified dollar amount (which will be 2500 for you), or with an economic useful life of 12 months or less;.(2) the taxpayer treats the amount paid for the property as an expense on its books and records in accordance with its accounting procedures. ( do this on your bookkeeping software or whatever you utilize)(3) the amount paid for the UOP doesn't exceed $2,500. as substantiated by the invoiceNote: The cost for the Unit of Property includes l additional costs (for example, delivery fees, installation services, or similar costs) if these additional costs are included on the same invoice with the property.2) Small taxpayer safe harbor: To be eligible for the safe harbor, the total amount of improvements for the property for the tax year may not exceed the lesser of $10,000 or2% of the property's unadjusted basis.If the total amount paid exceeds the safe harbor threshold, the safe harbor does not apply to any amounts spent during the tax year.

I wrote the above for informational purposes.

For income tax purposes, if all trust income is distributed to the beneficaries every year,  the beneficiaries' state of residence determines the applicable state income tax rate on that income. 

Something my father taught me about new construction is the logical design of their build to serve a specific purpose, such as buy/hold apartments. 

I signed on with Real Estate Federal's lead service in December 2017, and as of now (Mar 3 2018) I have received no leads whatsoever for my $1950 initial investment with them.

I am a big fan of using YouTube for educational purposes and am always looking.

I recently came across a list of leads being offered by a realtor of short sale opportunities where the sellers were being foreclosed on while having tens of thousands of dollars in equity with the home.