Converting primary residence into rental property

[Elio Mariani]

Thank you for BiggerPockets. This is a wonderful forum.

I am taking a job out of state and will purchase a new primary residence with an owner-occupied loan. I am considering turning my current residence into rental property. I bought it 5 years ago for $350k, it's now worth $275k, and i have $200k left on my current owner-occupied loan.

Asset protection is my first consideration. I have other investments. Should I transfer the property to a LLC or trust? Reading the forums, it sounds as if the current loan will make a transfer to a LLC difficult. Would someone confirm? If I use a trust, should I still establish a business entity to run the rental business? I plan to use a property mgmt company so I'm not involved day-to-day.

What type of insurance should i buy? Does my current homeowners insurance need to be replaced by a landlord's policy? Should I buy a commerical general liability policy? I already have an umbrella policy.

With regards to taxes, will I still be able to deduct the loan interest from current loan even thoughI will have a new loan for my new residence?

Thank you for your advice and recommendations.