Primary residence to LLC (and yes I did a search :) Florida

[Christian Weber]

So I am not the smartest person and some of the helpful replies in previous posts was above my mental capacity.

My situation

I own a home (homesteaded in FL) and have 2 roommates which help pay the bills.

numbers - 

mortgage left 155k, 

home value 330k, 

current interest rate 4.125% on conventional with 24 yrs left on a 30 yr

monthly payment with HOA $1600 pcm

I am wanting to either

1) turn this primary residence into an LLC and purchase another property to move into and start the process again with the aim being to rent my current house out on an annual 12 month lease for at least 2 - 3 years as I was told that as long as I lived in it 2 out of 5 years I can then sell without paying capital gains (though this confused me and anyone wanting to teach this to me like im 5 years old would be greatly appreciated). Reason for the LLC is I have 180k of equity in this home, additional 150k in retirement savings and another 60-80k in cash in my bank account and I want to make sure im protected if I rent it out and the renters sue me (im told that is a thing) - the nw home would become my new homestead

2) Put a heloc on the home (im told I should be able to get about 100k on top of about 60-80k cash I have), keep it as my primary and use the money as a downpayment for flips and either payoff upon completion or put a tenant in and refinance out

3) Refinance out 90-100k from my current home, mortgage payment would go up $300 per month ($3600 a year) and just use that money for flips/buy and holds or even just stick in the S&P at an average of 7-8% return so I am making 3-4% more on my money then it being in the house

I am super new to all of this, have been saving my pennies up for awhile and need to get going. 

Also will be working remotely so going to look towards Tennessee as a place to purchase as their is no state tax

Advice welcome especially in teach me like im 5 years old format

Thank you