Renting your own house?

[Jeffery Rymer]

I am a new real estate investor, I have been reading every book, blog, you-tube video and forum  post I can absorb. The question is in Rich Dad, Robert states that owning your home is not an investment, but rather a liability. I got that, no issues. 

The question is, is it legal to "sell" or deed your home into a LLC and then rent it from the LLC? You could theoretically rent it to yourself cheaper than the mortgage and have a loss as a business, as long as there are other income producing properties to offset. I can potentially see a problem of mixing money if you were to deed a property to the LLC that you personally have a loan on? But why not try and lose the liability. This would effect net worth, but how damaging is that?

Thoughts?