You cannot do what you described in your last paragraph unless they also wouldn't be getting paid/other consideration until the year of the title transfer as well.

TN is a "hybrid" state -- if you win the auction, you get a first lien on the property, and if it's not redeemed withing a year (all the past due taxes are paid in full) you automatically get a deed to the property. 

Winston-Salem has a cost of living ranked as 38/50th most expensive in NC, which means as far as NC is concerned it's pretty agreeable in pricing. 

Rent doesn’t always get paid either.

Then I tell most of them I’ll have to bring their rent up just a bit due to my higher mortgage and expenses than the last landlord.

@Davit Gharibyan They advised correctly, this adds no additional value and no additional liability protection, only additional expenses.

However I have the right partners and at some point the land will be paid for although we hope to have it sold before then..

For our previous investment properties we used a home equity loan and cash to buy and paid it off in a few years. 

I was under the understanding that I could do a room ratio and deduct 50% of the upper unit expenses.

Quote from @Michael Plaks: There are many CPAs here and many investors who think they are CPAs.The key issue to understand is: you cannot create any tax losses from renting rooms in your house.So if I rent out one of my rooms at say $600 a month ($7200 a year), I cannot deduct more than $7200 in expenses?