@NCperson wrote:
....$2,000 of interest each year ($50,000 * 4%) would be part of Schedule A each year and the rest of the interest would be part of the investment property expense....
The problem with that reasoning is CCA 201201017, which essentially states that the election to treat debt as not secured by the qualified residence must apply to the entire indebtedness.
See https://www.irs.gov/pub/irs-wd/1201017.pdf
