Or if I still want to have the 401k Invest in an LLC, I believe I can open an LLC business account, have a form that says it is a private equity investment from the 401k, and then operate the LLC to hold a rental property.Fidelity has reps that don't understand things.

Contracts don’t tell me anything more than that a clever attorney was hired to cross T’s and dot I’s. 

However, it may not provide significant tax benefits if you don't get REPS status.

I am getting some conflicting info from different Fidelity reps so I'd like to ask real customers of Fidelity here for suggestions.

Hire an attorney and post the court costs and attorney costs to their account. 

Did you do them yourself or hire help?

While I’m no fan of realtors, and think they are often overpaid and under qualified, the idea about not being tied down is one of the dumbest compliant’s, in literally every other line of work, you get tied down, go hire a lawyer, you pay them by the hours, go hire a doctor you pay them by the hour, and you are not being tied technically, you could agree to pay two agents out of pocket, but of course no one does this for the same reason no one pays two lawyers.  

correct. they typically are hired by the lender or are on their team

It is always worth looking at returns if you had to hire a PM. 

On the other hand, I feel one of the main advantages of passive investments (via syndication/crowdfunding) is that I can hire a manager who has years more experience than I can ever hope to obtain myself.