Hopefully after all the hard lessons learned and knowledge gained from the first property, it won't take another 5 years to get our third.

The benefit(s) of diversification will likely get washed away in the cost of management. 

Did you ever make any progress in gaining any of this information?  

Again consult an attorney and/or accountant for estate planning, but one of the few earthly benefits to dying is passing on property with a step up basis meaning less taxes or even no taxes for the kids to pay out when/ if they sell they the property.

No it is not necessary, it is up to you to decide on the cost/benefit of such a structure.

This gives you debt pay down, hopefully market appreciation, forced appreciation via improvements and tax benefits, lots of tail winds. 

There's no savings to be gained by working directly with the seller's agent.

Moreover, you might not be able to convince the seller of the benefits they receive and you might not be able to get around the loan servicer responsibilities.

Anything else could be used against you and adds ZERO benefit. 

They just count toward your basis, and can reduce any gain when you sell.Part 2: Mortgage Interest and Real Estate Taxes 75% will be deducted against rental income on Sch E 25% will be deducted as itemized deductions on your Scheduel A (If your itemized deductions are above the $24k required for 2018 to be able to itemize) If your itemized deductions are below $24k- you get the $24k standard deduction instead and nothing happens with that 25% of the interest/re taxes.