We present and discuss optical imaging of 76 AGN which represent the 2MASS-selected sample for z<0.3, from a full list of 243. They are found to have dust-obscured nuclei, residing in host galaxies that show a high fraction (>70%) of tidal interactions. The derived luminosities of the AGN and host galaxies are similar to traditionally-selected AGN, and they may comprise some 40% of the total AGN population at low redshift. We have measured a number of host galaxy properties, and discuss their distributions and interrelations. We compare the 2MASS AGN with optically selected samples and the IRAS-selected galaxy samples, and discuss the differences in terms of merger processes and initial conditions.