I have been marketing his off-market properties for over a year.SCENARIO #2 - Major seller/broker approaches me and wants me to sign NDA / CA as principal buyer.

I have only had the house for a little over a year so only ~$10k in principal has been paid off and I am not sure what the current value is.

You can make this transfer to a limited liability company (LLC), provided that "The mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements."

Should the LLC pay me for the monthly payment and record the interest as expense and the principal as distribution? 

There are companies that provide that service and a principal place of business for $25 to $200 per year. 

I'm assuming that this is your principal residence. 

Here in Oregon we are all Brokers and then there is the Principal Broker who has to review everything we do as brokers in the office. 

You'll have some combination of monthly cash flow, mortgage principal payments, and house appreciation all adding to your net worth.

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

Certainly the principal on any loans, arrears (my boys would laugh at this...