That is the Safest and Easiest thing to do for your Investment Portfolio.

Seems like an overkill and all you need is an insurance policy as any good attorneys first question will be "how much did the LLC who is to be separate from you pay for the property" - when the answer is zero and it was gifted. the next question will be do you gift properties to others as well?

The easiest and straight forward option would be, as you said, to sell the current residence, payoff the HELOC (or most of it) and then get back to saving with your jobs and the rental cashflow.

I am aware of California's Prop 13+58+19 prop tax inheritance evolution and its complexities with LLCs but we are not considering inheritance or parent->child gifting etc.

. 😂😂😂 I have "10 doors" (not trying to sling the lingo); it's the easiest way to explain my properties in California.

Then let’s say the loan gets called due, I’d put another (10-15k) make it a nicer product for a home buyer, and put it on the market.But it wouldn’t be the easiest thing do to once you have to pay the bank back in 35days.

For example if you wanted to gift $100k to your child to purchase a business, it may be best to make your child manager, with say a 20% interest, while you and or your spouse maintain a 80% interest.  100% of any net income can still be received by your child as manger, or even for just his 20% interest, as profit allocation  need not align with ownership percentage in an LLC.

The easiest way that I have found over the years is to simply ask other investors, specifically in your local market.

Many new investors gravitate towards the lower cost SFH's because they are easy to finance, abundant in many markets and are the easiest pathway to completing the BRRRR  which most new investors view as the ultimate real estate success story. 

:)  Really though, I'm gifted and complexity is my middle name.