okay, yes it is financed through a VA loan.
When i move i should be purchasing a duplex.
Should i go to the city and see what i need to do to turn it into a rental?
In my opinion and I'm not an attorney...
No need for an LLC yet. Using a corporation would hamper your ability to get regular residential rates on mortgages. Get an umbrella liability policy instead.
Why should I?
For liability protection and sometimes tax purposes.
How do I?
You can do it yourself, it isn't all that difficult in most states. You can have an online service do it for you on the cheap. Some accountants provide this service. Or you can have your attorney create it.
Some lenders allow transfer to an LLC with lendee members. Right now, with low interest rates, as long as you pay them they usually don't care. But if interest rates rise a lot, I could see the banksters looking for wraps and other transfers, then use do on sale clauses to force refinances into higher rates. So get any approval in writing.
I would recommend running it past your attorney and accountant. There is no one best way, and different locations, finances, and personal situations can determine your best liability and tax protection. You don't want to have to go back and unwind a wrong plan. I made this mistake and paid an obscene amount in taxes that I could have avoided if I would have asked my accountant first. Good luck.
has your condo increased in value from the time that you purchased it?
If it has increased significantly - you may want to consider selling it to exclude up-to $250,000 of gain(if single).
If the property did not increase much in value and you still plan to convert it to a rental - You are not required to convert the ownership to an LLC to claim it as a rental business. Converting to an LLC may afford you liability protection. However, you must be have everything in the LLC's name(title, mortgage, bank account etc) in the LLC's name or you may have created an LLC that does not provide you the protection you think you have.
Umbrella Insurance provides a different type of liability insurance but it can be considered an alternative to an LLC.