Advice for converting house to rental

[Michael Verrilli]

Hi, I've been looking to rent houses in my area. We would like to move and our current primary residence would make a good rental- so this seemed like a good place to start. I know the house, I know what needs to be done, etc. so it seems safer for me from that perspective.

I'm looking to figure out the strategy on how to accomplish this.  Ultimately I 'll talk to a lawyer and/or accountant, but for initial planning purposes, I thought it would be helpful if anyone could provide some advice. 

This is what I was thinking: 

1. Create an LLC
2. Sell my house to the LLC at FMV
   - I'll have the LLC buy the house at FMV with a new loan (putting down 20% of the FMV)
   - I'll also need to put some money in to do upgrades and repairs, prep for renting, etc ($30-40k)
   - I will need the equity from the original mortgage to buy a new primary residence, so I will only be leaving the 20% FMV 

Is this the right way to start? Is there an issue doing this with my own house? Would lenders balk at this? Are there certain types of lenders or loans I would be working with here? 

Credit-wise I have execellent credit and medium-low DTI. Most cash is in the form of retirement accounts and house equity.

Thanks for any insights you can share.