Cash out refi from VA loan and Put home in an LLC?

[Jace Thornton]

Alright I have 2 rentals and currently live in the 3rd rental. I have 2 homes in a VA loan and am looking to sell my first home into a LLC that I establish to essentially do a cash out refi. As I write this I feel I might have to pay taxes on the profits from the sale/transfer. Is that correct? Anyone ever do something like that? Tips or advice on what to avoid?

This will allow me to restore my VA eligibility to buy a 330K home. I will take the cash out from the selling of the home to buy other BRRR properties in the future.

The goal of this plan is to free up VA benefits to purchase a new home, rent out the current home that I am in and get cash to put into other investments.

Please feel free to offer any advice or critiques. Thanks in advance.