Thanks @Adam Bartomeo and @Chris Seveney.My plan to move the rental property to an LLC was to remove personal assets from any liability claims (i.e restrict liability claims to assets of the LLC).Yes my plan were to quit claim the deed to the LLC, but if the mortgage company is not cooperating I probably have little choice but to leave as it is.

Yes, you can do SDIRA buy a distressed property and rehab the property.BUT be aware of "Prohibited transactions" and  "disqualified person".

Personally, I would only do it if there was value add. 

You can call it whatever you want...But regulators in most States are just pursuing private lenders who are lending on primary residences anyway, so most HMLs are probably ok to keep on doing what their doing, "under the auspice of commercial lending."

I've never personally worked on a transaction like this, but know folks who have.

Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.3.

Personally - don't do that.

In your case, the LLC that owns the single-family home would need to be the one making the new purchase to qualify for a 1031 exchange.However, using a 1031 exchange to buy out shares of another LLC is generally not allowed, as the IRS views LLC membership interests as personal property, not real property.

Most of them are doing a second loan and keep the first because they have good rate, than they are using the money as downpayment for an investment home.

Happy to keep an eye out and let you know if anything interesting comes along either way.