What this implies to the typical RE investor is obtaining significant cash flow is a big challenge right now and relying on other RE profit sources (such as a value add and not doing a value subtract) may be a more certain path of generating returns.  

One way to get tax benefits while you're living there could be installing solar panels or upgrading the energy efficiency of the home. 

Before you spend any more energy or resources on this endeavor explain the precise fear that has you wanting to transfer this property to an LLC.

Blackstone’s non-traded REIT now owns about half of all the real estate within that sector, according to NAREIT.Setting a priceRAD sets its share price by tallying its net asset value — the total appraised value of its real estate and other assets, minus any money it owes or other liabilities — and dividing that figure by the number of shares it has outstanding, according to the circular.The last time it publicly broke down its share-price calculation was on Sept. 30, when the stock was selling at $18.52: a net asset value of $27.3 million divided by 1.47 million shares.RAD’s properties are appraised, in part, based on the income they generate as rentals, according to the circular.But some of the rents in the document’s inventory of RAD’s holdings appear to be overstated, in light of the buildings’ conditions, as characterized by L&I.

I simply don't understand the point of SubTo when there is a many generations old existing legal instrument readily available for use.   

Why risk your personal credit or you time and energy in needless mistakes when you can build a strong business structure, secure funding, and grow smarter from the start?

It's been generating an average monthly profit of $1,000.

This is NOT Business Credit.By establishing a separate corporate credit profile on the EIN Number (separate from the business owner's SSN/FICO), investors can access substantial business credit lines, capital for property acquisitions, and renovation funds without personally guaranteeing the debt.This approach creates a powerful financial firewall between personal and business assets while potentially generating a significantly larger (ROI) through reduced interest rates, increased borrowing capacity, and the ability to scale investments more rapidly.The education gap surrounding EIN corporate credit means savvy investors who understand and implement this strategy can gain a significant competitive advantage.

If you've been active in this business and actively pursuing a profit during the year, the loss the business generates could help offset other income on your tax return. 

What you would want to evaluate is the income generated from the income-producing property(s) to see if the income from your rentals would cover the cost of your new HELOC payment.