Improvements are deductible, but have to be depreciated over 27.5 years for a residential rental, so your deduction would be minimal in the year you put them into service. It sounds like you may be deducting them as repairs, which is not appropriate for major renovations as you describe.
The main reason a loss on a schedule C would not be deductible would be that you didn't materially participate in the business or you didn't have money at risk in the business, so you would need to review your answers to those questions.
Also, unless you are providing substantial services to the rentors, such as would be the case with a bed and breakfast, you should report the activity on a schedule E for rental income, not on a schedule C which is for business income and expenses.
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