Also, mortgage payments are not 100% deductible since it includes a principal component. 

@Levi Bernard What are your target rents for this unit?

My question is this, if the conventional, SFH investment loan is in one of our names, can we a) put the rest of team's name on deed and b) can we pay for the mortgage through the LLC, and therefore be able to claim the mortgage interest deduction?

You will also be able to take advantage of depreciation, interest deduction, property taxes, and mortgage pay down.  

Question I have is: can I deduct the interest payments from pulling cash out in my taxes?

Even if your neighbor meets all the WA requirements to adversely possess a portion of your land, a recent change in WA law (2011) requires that the adverse possessor repay you a prorated portion of the property taxes for the land they adversely possessed.RCW 7.28.083Adverse possession—Reimbursement of taxes or assessments—Payment of unpaid taxes or assessments—Awarding of costs and attorneys' fees.(1) A party who prevails against the holder of record title at the time an action asserting title to real property by adverse possession was filed, or against a subsequent purchaser from such holder, may be required to:(a) Reimburse such holder or purchaser for part or all of any taxes or assessments levied on the real property during the period the prevailing party was in possession of the real property in question and which are proven by competent evidence to have been paid by such holder or purchaser; and (b) Pay to the treasurer of the county in which the real property is located part or all of any taxes or assessments levied on the real property after the filing of the adverse possession claim and which are due and remain unpaid at the time judgment on the claim is entered.(2) If the court orders reimbursement for taxes or assessments paid or payment of taxes or assessments due under subsection (1) of this section, the court shall determine how to allocate taxes or assessments between the property acquired by adverse possession and the property retained by the title holder.

Things that are allocated to the owner unit is allocated one third and is deducted where permitted on the personal part of the 1040 such as property taxes. 

Each person does their own taxes and the person whose name it is in has the deduction of what they paid out to you.  

And the interest is deductible. 

He can be the sole owner of the LLC but if you are the mortgage holder you would not be able to deduct this through the LLC.