@Brett Grabowski, If all of those single member LLCs have elected to be taxed as sole proprietors and do not file their own tax returns and all activity of the real estate is reported on your own Sched E then you are actually the tax payer for all.

One just need read the law for a very easy understandingThe preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212.And then the reference from the above law to IRS Code 212(1) It has been paid or incurred by the taxpayer during the taxable year (i) for the production or collection of income which, if and when realized, will be required to be included in income for Federal income tax purposes, or (ii) for the management, conservation, or maintenance of property held for the production of such income, or (iii) in connection with the determination, collection, or refund of any tax; and(2) It is an ordinary and necessary expense for any of the purposes stated in subparagraph (1) of this paragraph.And for even simplified version, just look at the IRS guidance on the subject...What Deductions Can I Take as an Owner of Rental Property?

I also have a lot of experience in real estate (I used to sell luxury homes in LA and my license is still in good standing although I haven't been active).

I'm working on becoming a realtor but I'm not licensed yet so that increases my cost quite a bit.I have done a flip before but that was a sure money maker where I think this one isn't such a sure bet.

I got active in life.

I am a Navy service member, Active Duty, currently stationed in Maryland.  

stated income loan would be your best bet but you would Max out at  75% LTV and rates would be higher than a conventional loan

This house just had a 20% reduction and an increase in activity this weekend.

Coming from a farming background I think your best bet is option two.

I really want to turn that active/ordinary rarned income into passive income as soon as I get credit and learn more about rental properties, leases, etc..