Is the 2.86 your undergrad or 1L gpa?  Either way, I transferred T4 to T2 3 years ago.  I had a really high rank though.  Not saying you need a really high rank (though you did when I transferred because everyone in the world was going to law school), but it's certainly possible to do. 

Edit:  Just read your post a little closer (sorry).  I had a 3.0 going into law school and slightly higher LSAT.  I went to a T4 school and then worked extremely hard my first year to transfer.  I got into a bunch of T2 and a couple T1.  I wouldn't go to law school expecting to finish in the top 10% though.  90% of law students won't finish in the top 10%.  You have to work extremely hard.  If this is something you feel you are capable of accomplishing, it can be done. 

I think the reason the OP heard it was difficult was because even top grades from a lower-ranked school won't help if your LSAT isn't up to snuff or they don't need more people. Law schools accept very few transfers, usually only to replace people they lost through attrition or transfers out.

Maybe.  My LSAT wasn't very good and I still transferred up multiple tiers.  I started at a tier 4 as well.  I don't think LSAT grades are very important for transferring.  Easily the most important are grades and class rank.  Though I definitely agree about the attrition / transfers out. 

I don't know where you are currently attending, but moving across county to a school where you don't know anyone and all the 1L clicks have developed can be tough. I had a friend that transferred from my school to USC and she regretted the decision. Obviously that is not the case for everyone and maybe it will be a good decision it is personal for everyone, but if your doing well somewhere it may not be worth rocking the boat.

I did just this.  I transferred from a school on the east coast to a school in CA.  I found that I clicked just fine with some existing students, but my closer friends were all transfers as well.  Just giving another perspective is all.  I too know people who transferred and ended up studying on their own, etc. 

Can anyone offer any tips or advice when it comes to drafting a transfer personal statement?

Also, in terms of transfer admissions, does anyone know what the admissions committee is looking for?

From my experience, in terms of transfer admissions, your grades and class rank are without a doubt the most important factor.  I doubt some schools even read mine. 

Location and occasionally ranking are important for finding a first job in my experience.  Location seems far more important outside the T14 or so.  After your first job, employers seemingly only care about your work experience. 

Unlike Legend, I transferred after my 1L year.  It was the best decision for me not because I moved up in rankings, but because I moved to a better location to a school with much more to offer in terms of classes related to my field.  Like Legends friends, I found the move incredibly stressful.  Fortunately, moving stress stays around for the short duration of a move alone. 

As for what he said about "being a star", I did just the same at my new school.  I've heard of people doing worse once they transferred to a "more difficult" school, though I kept my same routine and did just fine.  It's still a matter of discipline and dedicating time to school.

I just thought I'd at least relay that I had a very positive experience transferring.  I'm sure many people end up like Legend has described, but if you make a fully informed decision, I'm sure you'll make the right one.