Pretty basic LLC question

[Account Closed]

First, some background info; I am working on buying my first rental property. I am planning on financing it with a home equity loan on my residence which I own outright.  This all hinges on the pending appraisal of my home.  If things work out like I think they should, I will be purchasing the property for $25K or less, and putting $5-10K into it.  The rent will be around $500-600.

I have a two part question:

1. Do I go through the hassle of setting up and maintaining an LLC for this when we are talking relatively small dollar amounts?

2. If so, how does the fact that I am paying for it with a home equity loan on my residence come into play? I mean, do I just take that money and transfer it into my LLC and the rental is now owned by my LLC? Is it as simple as it sounds?

I guess the main underlying issue is I don't completely understand LLC's as well as I should. I have been looking for more info on the subject...if anyone can point me to a good LLC specific source, I would appreciate it.

Thanks,

Mike