Property value: 400,000, land: 125,000 structure 275,000 => Depreciation: $10,000 a year.
Rent: 20,000 a year (assuming price to rent ratio of 20)
Property tax: 1% $4000 a year
Insurance $1000 a year.
Mortgage: $300,000 loan at 3.5% for 30 years, interest is roughly $10,000 a year for the first few years.
So annual taxable income =
Rent - (tax + insurance + mortgage interest) - depreciation
taxable income =
20000 - (4000+1000+10000) - 10000 = -5000