I am an investor and agent just north of you in Abilene, Texas.

Our company won't accept, "addition interest" for this reason.Also, this is being misrepresented by the agent, since insurance companies ALL add lenders as, "additionally insured" as required per mortgage docs.

I'll also ask my Enrolled Agent what his take is. 

I am a real estate agent that has access to the MLS, but I've seen through my research that the best deals are the ones off-market.

The advice I give my clients is to follow these first steps: 1) Meet with an investor friendly agent.

You'll be fine unless you want a job in real estate (like being an agent) that requires heavy outreach, cold calls, or interaction with others. 

Having an entity does not convert payments that are non-deductible and then makes them deductible.You want to work with a CPA who understands the deductions eligible to real estate investors(and agents since your profile mentions that you are an agent). 

If you do become a part time agent I'd join a team that way if you need help with showings they can.

@Paul Welden Paul, I plan on using around 10-12k of my savings on a down payment + closing (will escape buyer agent costs as I'll be representing myself.)

We purchased it the traditional way by going through an agent, we viewed some houses on our second trip out there and ended up picking one and going for it.