To rent (to myself) or not to rent

[James Bird]

I bought a 4 bed 2 bath split-entry foreclosure 2 years ago as my first home (and still live there). I'm currently closing on my second single family and looking for a 3rd, so I set up the LLC, bank accounts, etc.

My current payment is in the 700 range and it would rent in the 1000 range. I want to use it as a rental as soon as it makes sense but that could be a few years out, hopefully sooner. I'm asking myself, why not switch now and rent to myself so it will be ready when the time comes? Also benefit from the tax advantages, improvements costs, asset protection, and start depreciation now? I plan to do everything legally (if this is legal) with rental contracts and proper paper trail.

If YES, would it make sense to rent at my mortgage rate or standard rate?

I haven't ran all of the numbers yet, so if this is nonsense please shoot me straight. I'm unfortunately still in the beginner stages and trying to find the best ways to move forward.

Thanks in advance.