For instance I would like to live near an investment property (or, depending on the strategy I employee, I will need to live near the property). 

So you may be able to save more money for retirement, but not get the deduction.https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

It’s tough, but you’ve got to be patient.

I know some downsides: double taxation as the corporations profit would be taxed and dividends/wages to shareholders/employees. 

Two high-salaried W2 employees filed a tax return with $0 income, attaching this creative argument:"I am a private-sector worker, not an “employee” as defined in IRC 3401(c) and IRC 3121.

Also would you get an physical office to ensure that your employee is putting in quality time? 

materials, employee cost, truck costs, insurances etc.

It would be tough.

@Joseph Sapyta I am a Realtor in Phoenix and I'll tell you duplexes are tough to find here!

@Anthony Sgro that is tough with such few comps.