Tithing from an Investment Apartment
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Question
Purchased an apartment for investment with bank financing, and each month pays a mortgage of 3,000 shekels and receives rent of 4,000 shekels. Should he tithe from the entire rental income or only from the amount exceeding the mortgage?
Answer
Even the amount paid towards the mortgage is considered profit, as each month you gain additional ownership of the property, reducing the bank's share in the apartment. However, when a person sells the apartment, they can deduct all that was given over the years.
If it is difficult for a person because they lack liquidity and intend to sell the apartment once it is fully owned, they can calculate the tithe upon selling the apartment.
If the apartment is intended for one of his children when they marry, and if the child is in need and has no one to assist in purchasing a home, there is no need to tithe from the mortgage.
Source
Shulchan Aruch (Yoreh De'ah, Siman 249, סעיף א).