There have already been some great replies covering the NEEDS, so I won't comment on the LLC, insurance, or lender variables.
But I do have a few pieces of advice:
1) Prepare the house to be listed and have it reflect the type of tenants you want.
Far too often you see owners transition their property to a rental and don't properly prep the residence for renters, which leads to longer vacancy periods, lower rental rates, and sometimes less desirable tenants.
When we transitioned our primary to a rental, we patched all the holes, painted most of the walls and touched up the baseboards, cleaned the tile and grout, deep cleaned the appliances, and manicured the landscaping. Then I had a friend come in and walk the house with fresh eyes and evaluate the property and he said it looked good.
We spent about $500 in supplies and it took a sweat, but the result was approved tenants in 4 days at the top of the rental range for the area.
2) Get a good CPA who is experienced in real estate investing. There are a lot of tax advantages to owning a rental property. Also, look into a cost segregation study once the property is in service as a rental.
Good luck with the transition!
