I think people have the misconception that to be a business, you need an LLC.

One of the biggest misconceptions I witness time and time again with investors is regarding their ROE (Return On Equity).For example, if you acquired one of your SFH for $100,000 and paid all cash (Mortgage Free) and we subtracted your expenses at $2,000 from gross rents of $12,000, you would have a NOI of $10,000. 

...Warren Buffet has a net worth that can withstand a few speculative purchases that don't pan out...but, unfortunately, most of us are not Warren Buffet :(    Speculative purchases should only be a very small percentage of an investor's net worth because, at the end of the day, nobody knows what markets will do in the future.Second, you mentioned that you're focusing on new construction because you want a property that has minimal headaches/maintenance issues.One of the biggest misconceptions by inexperienced RE investors is that new houses are inherently less costly/less headache to maintain than older houses.

It’s worth learning about it and employing it as a tool in your real estate investing toolbox, especially if you plan on adding to your investment portfolio.While I’m not a professional in this domain, I looked a lot into the subject and I done CSS for several of my properties - I can tell you about some the gotchas and misconceptions vehiculated on the subject:- It’s not a way to increase depreciation on a property.

There is a common misconception that agents want to underprice your house because it makes no difference in their commission and the quick sale is better for them.. when in actuality what we know is that the quick sale is better for you, especially as an investor.

@Michael Plaks Thanks for sharing and clearing up some of the misconceptions!

There are a lot of misconception out there on how a realtor "should" be when really all that matters is are capable of getting the job done and are you adding value to your clients while keeping their best interest first... 

The biggest misconception people have is that they are borrowing their own money.

The common misconception is that people think they are paying more than the stated interest rate during the first few years because the majority of the payment is going towards interest. 

This is a common misconception that catches people with their pants down all the time.