It's not at all uncommon for residential rental real estate to show a loss "on paper" at tax filing time, every year the property is in service and rented. Since losses that exceed rental income get carried over to the next year, it's common for those carry over losses to increase with each passing year. Then, those losses are realized in the tax year you sell the property.
There's also an allowance, depending on your AGI, that allows you to deduct up to $25K a year from other ordinary income. So it's also possible you won't have any carry overs to deal with each year. It just depends on your AGI, along with the actual rental income received and expenses incurred.
