Rental home (w/ bank mortgage on personcal credit) in LLC

[Kat N.]

Dear Bigger Pockets Members, 

I have already bought my primary SFH (for living) with traditional bank mortgage. I am looking buy an investment SFH with traditional bank mortgage again on personal credit. I want to rent out the SFH. 

So the idea is to put the investment SFH into the LLC to (a) Limit liability to the LLC and investment SFH only, and (b) To deduct expenses and take advantage of depreciation.

Here are my questions:

(1) I have heard that since my investment SFH using bank mortgage on personal credit, I can't make LLC because bank won't allow it. Bank wants it be on my credit. Is that true? Anyone has done this before?

(2) Anyone has tried to do 1031 exchange with investment SFH? I know 1031 is more for commercial, but try a long shot if anyone has tried it for SFH.

I am looking forward to your advice. I really want to limit liability and deduct expenses through LLC.

Thank you very much, 

Best Regards,