Are you claiming you're having a loss based on the cash outflow that is going towards paying down the mortgage principle? Because otherwise property taxes, HOA protection money, mortgage interest, and the rest of your expenses are all deductible. If you had an actual loss on your schedule E, you'd be getting a tax break from subtracting (not just deducting) that loss from the rest of your income. So if my suspicion is correct, you are not actually "losing $1k a month" but rather that $1k plus your profit is essentially going into a non-optional savings account.