You may deduct all the property taxes you pay in the US for real property owned for personal purposes (taxes on business property goes on the business side of the tax return). However, the property tax itemized deduction may be limited by the overall $10,000 cap on deducting state and local taxes.
You may deduct mortgage interest on your main home and one second home. You aren't currently paying deductible interest on your main home, but this house can count as your second home.
