So the more authentic the content, the better.

So location is a big thing, The better the location the more you're gonna pay which cuts into your income.Good Luck!

That is a larger down payment (37.5%) and it might be better to get a conventional loan or DSCR loan.

That region will require some risk mitigation, and would be better suited for a local flipper specializing in those types of properties vs buy and hold OOS IMO. 

Yes, absolutely it is.You're better off using specific neighborhoods over zip codes.

But I’m just wondering if that capital could be better spent just going towards another down payment on another deal.

In my opinion, it's much better to find a property that is profitable out-the-gate and seeing the tax benefit as more of a secondary benefit.For the pass through entity bit, a single-member LLC is actually a "disregarded entity".

Local is almost always better if you can swing it.

Although I have knowledge and experience in my local market, I am most interested in some out-of-state options as I like those opportunities better than what I have locally but know little about where to begin evaluating those markets and the pros and cons of the different states.

Nothing better than a physical asset in your portfolio!