question about tax benefits, depreciation etc

[Account Closed]

Im starting my research into the rental side of things and one of the first areas im curious about is the supposed tax benefits.

I found this example on another website. Its generic enough that I thought to share it here. The problem I see here, is that the mortgage interest is still an expense. However, I think im looking at this wrong. The goal here is to build wealth, while allowing the rental income to cover your cost of acquiring the property with a mortgage, while at the same time using the tax benefits of depreciation.

Here is the example

Let’s say you invested in a fourplex that had a rental income of $128,000 and operating expenses of $46,000

Rental Income = $128,000 less Operating Expenses of $46,000 = Net Operating Income of $82,000

Your mortgage intrest for the year was $64,000 and your deprecation deduction was $16,000.

Net Operating Income $82,000 less Mortgage Interest of $64,000 less Depreciation of $16,000 = $2,000 in Taxable Income