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Loan interest not tax deductible for property if purchased for cash at Auction???

I am reading a book, The Real Estate Investor’s Tax Guide by Hoven. The author states that if you first buy a property for cash any subsequent loans are not tax deductible. Is this true?

I am not a tax professional but to the best of my knowledge buying with cash and then refinancing will not change the character of the interest that otherwise would have been deductible. If that was the case then the interest on any non-purchase money loan would not be deductible and we know that is not true.
There could be some merit to what he says when it comes to loan origination fees and non-recurring closing costs but not the interest on the loan.
You will always want to consult with a CPA, enrolled agent or other tax professional for answers to your tax questions.