Typically, while it will generate a cash flow, long term residential rental real estate does not generate taxable income *ON* *PAPER* at tax filing time. Especially if you have a mortgage on the property. But you will have a tax liability when you sell the property, assuming you sell it at a gain.
But do understand that if the property is in a state like Hawaii that taxes personal income, The Hawaii GET tax will be assessed by the state every year and you will pay the state that tax every single year, on top of the regular income tax for your other "ordinary" income you will pay to both the IRS and the state.
