Net loss on a rental means your income is less than your expenses and your depreciation,
For a typical rental, you may have a positive cash flow, if income is more than the expenses that you paid. In many cases when you add the depreciation deduction, it become a net loss.
For example, say rent is $1000 per month and it was paid timely all year. Gross income $12,000.
Your expenses, mortgage interest, property taxes, insurance, etc. total $8532.
Your cash flow is income $12,000 - expenses $8532 = $3468 profit before depreciation.
The depreciation deduction on a typical $150,000 rental is about $5400.
$3468 profit before depreciation - depreciation $5400 = ($1,932) net loss.
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