Starting an LLC and selling my personally owned rental to it

[Jeremiah Greco]

First time poster here,

I've been renting out my first home for the last 4+ years (same tenant). Just recently, I moved from Virginia (where the rental is located) to Florida. I was trying to sell the property to the tenant, but their credit is pretty poor. I wanted to get the equity out of the house (only 7 years left on the 15 year mortgage) and buy a rental down here in Florida. Just yesterday, I started considering starting an LLC, and selling the rental to the LLC. This would help me recover my VA benefits (which I used to purchase the home), and get a considerable amount of the equity out of the property. With this situation in mind, I have multiple questions:

1) Are there any reasons I shouldn't do this that I'm not considering?

2) What state would you recommend starting an LLC, I hear Nevada is great due to "series LLC", but I'm wondering if that would matter to me if I have to personally co-sign loans in order to finance new purchases. It seems like the I would still be exposing myself to liability unless I was able to buy all of my property for cash.

3) Would I just sell the house for the same price I paid for it originally to avoid taxation on any profits?

4) Since I would have to get a real estate investment loan, I understand I would need 20-25% down. If the house appraises at $200k, and I sold it to the LLC for $150k, would that meet the requirement? Or would I still have to pay 20-25% down?

Thanks for your time!

Jeremiah